The shaded triangle in the diagram above is known as
Answer Details
The shaded triangle in the diagram is known as the "consumer surplus."
Consumer surplus refers to the difference between the maximum price that a consumer is willing to pay for a product or service and the actual price that they pay. It represents the benefit that consumers receive from being able to purchase a product or service at a price that is lower than what they are willing to pay.
In the diagram, the demand curve represents the maximum price that consumers are willing to pay for a particular product or service. The supply curve represents the cost that producers incur to produce the product or service. The point where the two curves intersect is known as the equilibrium price.
The area above the equilibrium price and below the demand curve represents the consumer surplus. This is because consumers are willing to pay more for the product than they actually have to pay at the equilibrium price. The shaded triangle in the diagram represents this consumer surplus.
In summary, the consumer surplus is the benefit that consumers receive from being able to purchase a product or service at a price that is lower than what they are willing to pay. The shaded triangle in the diagram represents the consumer surplus.
