Can be thought of as the wealth that trade creates for consumers in a market Listen to the complete question?

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Can be thought of as the wealth that trade creates for consumers in a market?

Consumer surplus can also be thought of as the wealth that trade creates for consumers in a market. Consumer surplus is measured in dollars. Graphically, consumer surplus is the area below the demand curve and above the equilibrium price, from zero to the quantity traded.

What is the consumers gain from an exchange?

Consumer surplus is based on the economic theory of marginal utility, which is the additional satisfaction a consumer gains from one more unit of a good or service. Consumer surplus always increases as the price of a good falls and decreases as the price of a good rises.

What shows how much of two goods an economy can produce when it is using all available resources as efficiently as possible?

The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology.

Is defined as the difference between the maximum price a consumer is willing to pay for a product and the actual price?

Consumer surplus is the difference between the highest price a consumer is willing to pay and the actual price they do pay for the good, or the market price.

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