Figure 9-12
-Refer to Figure 9-12.Consumer surplus after trade is
A)$6,400.
B)$9,600.
C)$12,800.
D)$14,400.

Name: Figure 9-12 -Refer to Figure 9-12.Consumer surplus after trade is A)$6,400. B)$9,600. C)$12,800. D)$14,400.
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Question

Figure 9-12 
-Refer to Figure 9-12.Consumer surplus after trade is
A)$6,400. 
B)$9,600. 
C)$12,800. 
D)$14,400.

Quizplus · Accepted Answer

Consumer surplus after trade can be calculated as the area above the equilibrium price (P*) and below the demand curve. In this case, consumer surplus is equal to (1/2)*(40-20)*(320-200) = $9,600.

Figure 9-12 -Refer to Figure 9-12.Consumer Surplus After Trade Is