Figure 9.1.3
-Refer to Figure 9.1.3 above. If the market is in equilibrium, total consumer surplus is:
A) $1.
B) $3.
C) $200.
D) $400.
E) $600.

Question

Figure 9.1.3
-Refer to Figure 9.1.3 above. If the market is in equilibrium, total consumer surplus is:
A) $1. 
B) $3. 
C) $200. 
D) $400. 
E) $600.

Quizplus · Accepted Answer

Consumer surplus is the area above the price level and below the demand curve up to the quantity traded. In equilibrium, this area forms a triangle. Without seeing the figure, we typically calculate consumer surplus as 1/2 * base * height, where the base is the quantity and the height is the difference between the highest price consumers are willing to pay and the market price. Given the options and typical economic scenarios, $200 is a plausible amount for total consumer surplus in a market equilibrium scenario, assuming a significant scale of trade and price difference.

Figure 9.1.3 -Refer to Figure 9.1.3 Above. If the Market Is in Is