For a linear and upward sloping supply curve and a linear downward sloping demand curve, when the consumer has to pay a positive price for the good, the value to society of the market is a
A)Rectangle.
B)Triangle.
C)Four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the demand curve.
D)Four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the supply curve.

Question

Quizplus · Accepted Answer

The value to society of the market, also known as consumer and producer surplus, is represented by a triangle in this scenario. The area under the demand curve and above the price level, up to the quantity traded, represents the consumer surplus, while the area above the supply curve and below the price level represents the producer surplus. Together, these form a triangle.

For a Linear and Upward Sloping Supply Curve and a Linear