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

Question

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

Quizplus · Accepted Answer

Total consumer surplus is the area above the market price and below the demand curve, up to the quantity traded. In this case, the total consumer surplus is the sum of the triangles above the price of $50 and below the demand curve. The area of each triangle can be calculated as (1/2)base x height. The total consumer surplus is therefore (1/2)(10 x $20) + (1/2)(10 x $30) = $500 + $400 = $900. Therefore, the correct answer is B.