Use the figure below to answer the following questions. Figure 5.2.4a Figure 5.2.4b
-Refer to Figure 5.2.4.If the market price is $3 a slice,what is the consumer surplus in the market?
A)$11.25
B)$1.25
C)$12.50
D)$60.00
E)zero

Question

Use the figure below to answer the following questions.   Figure 5.2.4a Figure 5.2.4b
-Refer to Figure 5.2.4.If the market price is $3 a slice,what is the consumer surplus in the market?
A)$11.25 
B)$1.25 
C)$12.50 
D)$60.00 
E)zero

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the market price, up to the quantity demanded. At a price of $3, the quantity demanded is 5 slices (from the demand curve, not shown). The area of the triangle representing consumer surplus is 1/2 * base * height = 1/2 * 5 slices * $5 (difference between the highest price someone is willing to pay and the market price) = $12.50.

Use the Figure Below to Answer the Following Questions