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Figure: Regulated versus Unregulated Monopolist
-(Figure: Regulated versus Unregulated Monopolist) Refer to the figure. Calculate the change in consumer surplus from an unregulated monopoly to a regulated monopoly.
A) $6,400
B) $2,800
C) $400
D) $3,600

Question

Use the following to answer questions:
Figure: Regulated versus Unregulated Monopolist 
-(Figure: Regulated versus Unregulated Monopolist) Refer to the figure. Calculate the change in consumer surplus from an unregulated monopoly to a regulated monopoly.
A) $6,400 
B) $2,800 
C) $400 
D) $3,600

Quizplus · Accepted Answer

The change in consumer surplus is the difference between the areas of the triangles A and B. Area A is 12,800 and area B is 10,000. Therefore, the change in consumer surplus is $2,800 (12,800 - 10,000).

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