Figure 7-26
-Refer to Figure 7-26.At the equilibrium price,total surplus is
A)$600.
B)$1,200.
C)$1,500.
D)$1,800.

Question

Figure 7-26 
-Refer to Figure 7-26.At the equilibrium price,total surplus is
A)$600. 
B)$1,200. 
C)$1,500. 
D)$1,800.

Quizplus · Accepted Answer

Total surplus is the sum of producer surplus and consumer surplus. At the equilibrium price, producer surplus is $600 ($30 per unit x 20 units) and consumer surplus is $1,200 ([(50 - 30) / 2] x 20 units). Thus, total surplus is $1,800 (600 + 1,200). Therefore, the answer is (D).

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