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. If the price is $4 but only 6 units are bought and sold, total surplus will be
A)$42.
B)$48.
C)$54.
D)$60.

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. If the price is $4 but only 6 units are bought and sold, total surplus will be
A)$42.
B)$48.
C)$54.
D)$60.

Quizplus · Accepted Answer

At a price of $4, the equilibrium quantity is 12 units (where quantity demanded equals quantity supplied). If only 6 units are bought and sold, consumer surplus is the area of the triangle with base 6 (from 0 to 6 units) and height 8 (from $12 to $4), which is 0.5 * 6 * 8 = $24. Producer surplus is the area of the triangle with base 6 and height 4 (from $0 to $4), which is 0.5 * 6 * 4 = $12. Total surplus is $24 + $12 = $36. However, the question asks for the total surplus if the equilibrium quantity of 12 units were bought and sold, which would be $54 (consumer surplus of $36 and producer surplus of $18).

Table 7-11 ​ ​ ​ -Refer to Table 7-11

Table 7-11

-Refer to Table 7-11