Refer to Figure 19.1.The total consumer surplus in this market is equal to
A)$950.
B)$900.
C)$850.
D)$800.

Question

Refer to Figure 19.1.The total consumer surplus in this market is equal to 
A)$950. 
B)$900. 
C)$850. 
D)$800.

Quizplus · Accepted Answer

The total consumer surplus is equal to the area above the price line and below the demand curve. In this case, it is equal to the area of the triangle with base 20 and height 45, which is (0.5)(20)(45) = $450. Therefore, the total consumer surplus for all 2 units sold is $900 ($450 x 2). This means that the best choice is to sell 2 units. Any other choice would result in a lower total consumer surplus.