Jeffrey Bafilo's demand function for economics textbooks is Q = 1,001 - 10p. At a market price of $100 per book, what is Jeffrey's consumer surplus?
A) $100
B) $0.10
C) $0.05

Question

Quizplus · Accepted Answer

Jeffrey's consumer surplus is calculated as the area of the triangle formed by the demand curve above the price he pays. The demand curve intersects the price axis at Q = 0 when p = 100.1 (from Q = 1,001 - 10p, setting Q to 0 gives p = 100.1). The height of the triangle is thus 0.1 (100.1 - 100), and the base is the quantity demanded at $100, which is Q = 1,001 - 10(100) = 1. The area of the triangle (consumer surplus) is 0.5 * base * height = 0.5 * 1 * 0.1 = $0.05.

Jeffrey Bafilo's Demand Function for Economics Textbooks Is Q =