The accompanying figure shows the demand curve for a product that can be sold only in whole-number amounts. At a price of $15 per unit, what would be the total consumer surplus in this market each day?
A)$0
B)$6
C)$15
D)$75

Question

The accompanying figure shows the demand curve for a product that can be sold only in whole-number amounts.  At a price of $15 per unit, what would be the total consumer surplus in this market each day?
A)$0 
B)$6 
C)$15 
D)$75

Quizplus · Accepted Answer

At a price of $15 per unit, a maximum of 6 units would be sold each day. Consumer surplus on the first unit would be $25 (= $40 - $15), on the second unit would $20 (= $35 - $15), on the third unit would be $15 (= $30 - $15), on the fourth unit would be $10 (= $25 - $15), on the fifth unit would be $5 (= $20 - $15)and on the sixth unit would be $0 (= $15 - $15). So, total consumer surplus in the market would be $75 (= $25 + $20 + $15 + $10 + $5 + $0)per day.

The Accompanying Figure Shows the Demand Curve for a Product