Refer to the accompanying figure. What is total consumer surplus at the market equilibrium?
A)$6 per day
B)$80 per day
C)$160 per day
D)$240 per day

Question

Refer to the accompanying figure. What is total consumer surplus at the market equilibrium? 
A)$6 per day 
B)$80 per day 
C)$160 per day 
D)$240 per day

Quizplus · Accepted Answer

Consumer surplus is the area of the triangle below the demand curve and above the equilibrium price. The area of any triangle is equal to ½(b × h), where b = base and h = height. So here, consumer surplus is equal to ½(40 × 4)= $80.

Refer to the Accompanying Figure