The accompanying figure shows the demand curve for a product that can be sold only in whole-number amounts. At a price of $25 per unit, what would be the total consumer surplus in this market each day?
A)$0
B)$5
C)$15
D)$30

Question

The accompanying figure shows the demand curve for a product that can be sold only in whole-number amounts.  At a price of $25 per unit, what would be the total consumer surplus in this market each day?
A)$0 
B)$5 
C)$15 
D)$30

Quizplus · Accepted Answer

At a price of $25 per unit, a maximum of 4 units would be sold each day. Consumer surplus on the first unit would be $15 (= $40 - $25), on the second unit would $10 (= $35 - $25), on the third unit would be $5 (= $30 - $25), and on the fourth unit would be $0 (= $25 - $25). So, total consumer surplus in the market would be $30 (= $15 + $10 + $5 + $0)per day.

The Accompanying Figure Shows the Demand Curve for a Product