Figure 7-18
-Refer to Figure 7-18.If total surplus is $240 and consumer surplus is
A)$100,then the price of the good is $130.
B)$130,then the price of the good is $120.
C)$160,then the price of the good is $100.
D)$120,then the price of the good is $90.

Question

Figure 7-18 
-Refer to Figure 7-18.If total surplus is $240 and consumer surplus is
A)$100,then the price of the good is $130. 
B)$130,then the price of the good is $120. 
C)$160,then the price of the good is $100. 
D)$120,then the price of the good is $90.

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus and producer surplus. If consumer surplus is $160 and total surplus is $240, then producer surplus is $80. The price of the good is determined by the equilibrium where consumer and producer surplus are maximized, which corresponds to the given consumer surplus and total surplus.

Figure 7-18 -Refer to Figure 7-18.If Total Surplus Is $240 and Consumer