Figure 9-6

-Refer to Figure 9-6.Without trade,what would consumer surplus be
A)$210.50
B)$245.50
C)$367.50
D)$560.00

Question

Figure 9-6
 
-Refer to Figure 9-6.Without trade,what would consumer surplus be
A)$210.50 
B)$245.50 
C)$367.50 
D)$560.00

Quizplus · Accepted Answer

Without trade, consumer surplus is the area between the demand curve and the price axis up to the equilibrium quantity, which is the triangle ABC. The height of the triangle is the difference between the maximum price consumers are willing to pay (which corresponds to the demand curve) and the price at equilibrium. The base of the triangle is the equilibrium quantity. Using the coordinates provided in the figure, we can calculate the area of the triangle as:

1/2 x (140 - 72) x 5 = $367.50

Therefore, the correct answer is C) $367.50.

Figure 9-6 -Refer to Figure 9-6.Without Trade,what Would Consumer Surplus Be