Use the following to answer question:
-(Figure: Consumer Surplus III)In the figure Consumer Surplus III,total consumer surplus is _____ when the price is $10.
A)$50
B)$59
C)$124
D)$144

Question

Use the following to answer question: 
-(Figure: Consumer Surplus III)In the figure Consumer Surplus III,total consumer surplus is _____ when the price is $10.
A)$50 
B)$59 
C)$124 
D)$144

Quizplus · Accepted Answer

At a price of $10, consumer surplus is the area between the demand curve and the price line up to the quantity demanded, which is (1/2)($14-$10)(10-2) = $24. Consumer surplus for each unit purchased will be different, but the total consumer surplus is the sum of the individual units. In this case, the eight units purchased result in a total consumer surplus of $24 x 8 = $192. However, since the quantity demanded is only six units at this price, the total consumer surplus is reduced to $24 x 6 = $144.

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