-Refer to the diagram above.The difference between total surplus when quantity supplied is equal to quantity demanded and total surplus when price is $16.30 and quantity is 110 is
A) $405.
B) $423.50.
C) $600.
D) $800.
E) $1000.

Question

-Refer to the diagram above.The difference between total surplus when quantity supplied is equal to quantity demanded and total surplus when price is $16.30 and quantity is 110 is
A) $405. 
B) $423.50. 
C) $600. 
D) $800. 
E) $1000.

Quizplus · Accepted Answer

The total surplus is maximized when quantity supplied equals quantity demanded. When the price is $16.30 and quantity is 110, the total surplus is less than the maximum. The difference in total surplus between these two scenarios is $405.

-Refer to the Diagram Above