Use the following to answer question:
-(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Tuscaloosa.If the price of a burger is $2,consumer surplus will equal:
A)$650.
B)$400.
C)$225.
D)$450.

Question

Use the following to answer question: 
-(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Tuscaloosa.If the price of a burger is $2,consumer surplus will equal: 
A)$650. 
B)$400. 
C)$225. 
D)$450.

Quizplus · Accepted Answer

Consumer surplus at a price of $2 can be calculated by finding the area below the demand curve and above the price line, up to the quantity of burgers exchanged. This area is a triangle with a base of 50 burgers (from a quantity of 0 to 50 on the horizontal axis) and a height of $3 (the difference between the maximum price consumers are willing to pay and the actual price of $2). The area of this triangle is (1/2)(50)(3) = $75. Since there are 3,000 burgers exchanged at this price, the total consumer surplus is 3,000 x $75 = $225. Therefore, the answer is C.

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