Table 7-11

$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Price } \
\text { (Dollars per unit) }
\end{array} & \begin{array} { c }
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Quantity Supplied } \
\text { (Units) }
\end{array} \
\hline 12.00 & 0 & 36 \
\hline 10.00 & 3 & 30 \
\hline 8.00 & 6 & 24 \
\hline 6.00 & 9 & 18 \
\hline 4.00 & 12 & 12 \
\hline 2.00 & 15 & 6 \
\hline 0.00 & 18 & 0 \
\hline
\end{array}$$
-Refer to Table 7-11. At a price of $2.00, total surplus is
A)larger than it would be at the equilibrium price.
B)smaller than it would be at the equilibrium price.
C)the same as it would be at the equilibrium price.
D)There is insufficient information to make this determination.

Question

Table 7-11
​
​
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (Dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Units) }
\end{array} \
\hline 12.00 & 0 & 36 \
\hline 10.00 & 3 & 30 \
\hline 8.00 & 6 & 24 \
\hline 6.00 & 9 & 18 \
\hline 4.00 & 12 & 12 \
\hline 2.00 & 15 & 6 \
\hline 0.00 & 18 & 0 \
\hline
\end{array}$$ ​
-Refer to Table 7-11. At a price of $2.00, total surplus is
A)larger than it would be at the equilibrium price.
B)smaller than it would be at the equilibrium price.
C)the same as it would be at the equilibrium price.
D)There is insufficient information to make this determination.

Quizplus · Accepted Answer

At a price of $2.00, the quantity demanded exceeds the quantity supplied, indicating a situation of excess demand or a shortage. The equilibrium price, where quantity demanded equals quantity supplied, is at $4.00 with 12 units. Total surplus (consumer surplus plus producer surplus) is maximized at the equilibrium price. Therefore, at a price of $2.00, total surplus is smaller than it would be at the equilibrium price.

Table 7-11 ​ ​ ​ -Refer to Table 7-11

Table 7-11

-Refer to Table 7-11