Table 7-1
-Refer to Table 7-1. If price of the product is $135, then the total consumer surplus is
A)$-50.
B)$-35.
C)$15.
D)$150.

Question

Table 7-1 
-Refer to Table 7-1. If price of the product is $135, then the total consumer surplus is
A)$-50. 
B)$-35. 
C)$15. 
D)$150.

Quizplus · Accepted Answer

To find the total consumer surplus when the price is $135, we need to find the corresponding quantity demanded. Looking at the table, we see that at a price of $135, the quantity demanded is 9 units. The maximum that a consumer is willing to pay for that quantity is $150, so the consumer surplus for each unit is $150 - $135 = $15. Since there are 9 units, the total consumer surplus is 9 x $15 = $135. Therefore, the correct answer is C.

Table 7-1 -Refer to Table 7-1. If Price of the Product Is