Figure 7-26
-Refer to Figure 7-26.At the equilibrium price,consumer surplus is
A)$600.
B)$900.
C)$1,500.
D)$1,800.

Question

Figure 7-26 
-Refer to Figure 7-26.At the equilibrium price,consumer surplus is
A)$600. 
B)$900. 
C)$1,500. 
D)$1,800.

Quizplus · Accepted Answer

At the equilibrium price, the consumer surplus is the area between the demand curve and the price line up to the quantity demanded. In this case, the equilibrium price is $70, and the quantity demanded is 30. Therefore, consumer surplus is (1/2) x (40) x (30-10) = $600. Option B is the closest value to $600.

Figure 7-26 -Refer to Figure 7-26.At the Equilibrium Price,consumer Surplus Is