Figure 9.3
-Refer to Figure 9.3. If the market is in equilibrium, total consumer surplus is
A) $1.
B) $3.
C) $200.
D) $400.
E) $600.

Question

Figure 9.3
-Refer to Figure 9.3. If the market is in equilibrium, total consumer surplus is
A) $1. 
B) $3. 
C) $200. 
D) $400. 
E) $600.

Quizplus · Accepted Answer

Total consumer surplus is the area below the demand curve and above the price line. In this case, it is the area of the triangle with base 20 and height 20, which is equal to 0.5 x 20 x 20 = $200. Therefore, the correct answer is C.

Figure 9.3 -Refer to Figure 9.3. If the Market Is in Equilibrium