Refer to the accompanying figure. At the equilibrium price, total consumer surplus in this market is:

A)$4,000 per day.
B)$8,000 per day.
C)$12,000 per day.
D)$24,000 per day.

Question

Refer to the accompanying figure. At the equilibrium price, total consumer surplus in this market is:

A)$4,000 per day. 
B)$8,000 per day. 
C)$12,000 per day. 
D)$24,000 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(4000 × 6)= $12,000.

Refer to the Accompanying Figure