Figure 7-1
-Refer to Figure 7-1.If the price of the good is $200,then
A)consumer surplus is $150.
B)consumer surplus is $650.
C)producer surplus is $650.
D)producer surplus is $750.

Question

Figure 7-1 
-Refer to Figure 7-1.If the price of the good is $200,then
A)consumer surplus is $150. 
B)consumer surplus is $650. 
C)producer surplus is $650. 
D)producer surplus is $750.

Quizplus · Accepted Answer

Consumer surplus is the area under the demand curve above the price that consumers paid. In this case, consumer surplus would be (1/2) x (400-200) x (800-200) = $150. We cannot determine the producer surplus from the graph provided.

Figure 7-1 -Refer to Figure 7-1.If the Price of the Good Is