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. Both the demand curve and the supply curve are straight lines. At equilibrium, total surplus is
A)$44.
B)$56.
C)$72.
D)$96.

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. Both the demand curve and the supply curve are straight lines. At equilibrium, total surplus is
A)$44.
B)$56.
C)$72.
D)$96.

Quizplus · Accepted Answer

At equilibrium, the price is $4.00 where quantity demanded equals quantity supplied (12 units). Total surplus is the sum of consumer and producer surplus, which is the area of the triangle formed by the demand and supply curves above the equilibrium price. The base of this triangle is 12 units, and the height is $8 (difference between the highest price consumers are willing to pay, $12, and the equilibrium price, $4). Total surplus = 0.5 * base * height = 0.5 * 12 * 8 = $48.

Table 7-11 ​ ​ ​ -Refer to Table 7-11

Table 7-11

-Refer to Table 7-11