Figure 4.4.3
-Refer to Figure 4.4.3 above. When the price of pizza is $20, total expenditure and consumer surplus are, respectively:

Question

Quizplus · Accepted Answer

Total expenditure is calculated by multiplying the price by the quantity demanded at that price. Consumer surplus is the area above the price and below the demand curve, up to the quantity demanded. Without seeing Figure 4.4.3, the correct answer cannot be determined from the information given. However, based on the options provided and common outcomes in such scenarios, option C suggests a scenario where the total expenditure (price times quantity) is different from the consumer surplus, which is plausible if the demand curve is downward sloping and linear. This explanation is speculative and assumes a typical demand curve without seeing the actual figure.

Figure 4.4.3 -Refer to Figure 4.4.3 Above. When the Price of Pizza