GATE 2022 AR — Planning – Question 51

Urban Land Use and Transportation · Economics concepts of land, rent, land use and land values · 1 mark · Multiple choice

What is the shaded area in the demand-supply graph called?

Diagram for GATE 2022 AR — Planning question 51

Consumer surplus
Consumer deficit
Producer surplus
Producer deficit

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Show answer and explanation

Correct answer: (A) Consumer surplus

Explanation

The shaded region lies below the demand curve and above the market price, up to the equilibrium quantity. It represents willingness to pay minus actual payment: consumer surplus, A. Producer surplus would be the region above supply and below price.

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