Table 7-17

-Refer to Table 7-17. 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 7-17
 
-Refer to Table 7-17. 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

To find the equilibrium price and quantity, we need to find the intersection point of the demand and supply curve. From the table, we can see that the equilibrium price is $8 and the equilibrium quantity is 9 units. 
Consumer surplus at the equilibrium = ½ * (10 − 8) * 9 = $9 
Producer surplus at the equilibrium = ½ * (8 − 4) * 9 = $18 
Total surplus = consumer surplus + producer surplus = $27. 
Therefore, the correct answer is C.

Table 7-17 -Refer to Table 7-17. Both the Demand Curve and the Demand