The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. Answer Questions using this figure
-When antitrust enforcement agents break up this price-fixing cartel, consumers will gain $__________ of consumer surplus.

Question

The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. Answer Questions   using this figure 
-When antitrust enforcement agents break up this price-fixing cartel, consumers will gain $__________ of consumer surplus.

Quizplus · Accepted Answer

Breaking up a price-fixing cartel typically leads to lower prices and increased consumer surplus. The correct choice, $20,000, represents the estimated gain in consumer surplus from the reduction in prices after the cartel is dismantled.

The Figure Below Shows the Result of a Price Fixing