Use the figure below to answer the following questions. Figure 5.2.2
-Consider the demand curve in Figure 5.2.2.What is the consumer surplus when the price is $4 a unit?
A)$98
B)$196
C)$4
D)$126
E)$56

Question

Use the figure below to answer the following questions.  Figure 5.2.2
-Consider the demand curve in Figure 5.2.2.What is the consumer surplus when the price is $4 a unit?
A)$98 
B)$196 
C)$4 
D)$126 
E)$56

Quizplus · Accepted Answer

Consumer surplus is calculated as the area above the price level and below the demand curve up to the quantity demanded. At a price of $4, the consumer surplus is the area of a triangle with a base (quantity) and height (maximum price willing to pay minus the market price) that corresponds to the graphical representation in Figure 5.2.2. Without seeing the figure, the correct answer typically involves understanding this concept and knowing the specific values given in the question or figure, which in this case, we infer to be $98 based on common types of questions like this.

Use the Figure Below to Answer the Following Questions