Figure 9.4.2
-Refer to Figure 9.4.2 above. Before this policy was implemented, consumer surplus was:
A) $20.
B) $4000.
C) $6000.
D) $8000.
E) $12000.

Question

Figure 9.4.2
-Refer to Figure 9.4.2 above. Before this policy was implemented, consumer surplus was:
A) $20. 
B) $4000. 
C) $6000. 
D) $8000. 
E) $12000.

Quizplus · Accepted Answer

Before the policy was implemented, consumer surplus is the area above the price level and below the demand curve up to the quantity sold. Assuming a linear demand curve and a price that makes the area a triangle, the formula for the area of a triangle (1/2 * base * height) can be applied. Without the specific figure, a common scenario would involve calculating this area based on given price and quantity, which typically results in a significant value, but without the specific details from the figure, the exact calculation can't be provided. However, based on common scenarios and the options given, $4000 could be a plausible estimate for consumer surplus before a policy change affecting market conditions.

Figure 9.4.2 -Refer to Figure 9.4.2 Above. Before This Policy Was Implemented