Figure 4-3

Figure 4-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 4-3.What is the value of consumer surplus at a price of $18?

Question

Figure 4-3
  
Figure 4-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 4-3.What is the value of consumer surplus at a price of $18?

Quizplus · Accepted Answer

To find the value of consumer surplus, we need to determine the area of the triangle above the price and below the demand curve at a quantity of 40. This can be done by calculating (1/2) x (40) x (15-18) = $60. Therefore, the answer is A) $60. As for the best choice(s), it is unclear what the question is asking for.

Figure 4-3 Figure 4-3 Shows the Market for Tiger Shrimp. the Market