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Worksheet 6: Consumer Surplus, Producer Surplus and Economic Efficiency 1. Use the diagram of the demand curve below to answer the following questions. Figure 4.16 Price A P2 . ....s....." B P Demand Q2 Q1 Quantity a. What is the maximum amount that the consumer is willing to pay for Q, units? b. What is the consumer's total expenditure on Q, units? c. What is the area that represents the consumer surplus at price P,? d. What is the increase in consumer surplus when price falls from P, to P,? e. What portion of this increase in consumer surplus represents the gains of those who would have bought at the original price, P2? f. What portion of the increase in consumer surplus represents the gains to consumers who are persuaded to buy by the lower price, P