Figure 4.4.1
-Refer to Figure 4.4.1 above. The value of consumer surplus when price is $4 equals:

Question

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level, up to the quantity demanded. If the price is $4, the consumer surplus is calculated as the area of the triangle formed by the demand curve, the price line at $4, and the vertical axis. The correct calculation based on the figure would yield a consumer surplus of $21.

Figure 4.4.1 -Refer to Figure 4.4.1 Above. the Value of Consumer Surplus