In the figure above, at the market price of $15, the consumer surplus equals
A) $10,000.
B) 2,000 units.
C) $40,000.
D) $20,000.
E) $30,000.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the total amount consumers are willing to pay for a good and the amount they actually pay. In this case, the total amount consumers are willing to pay is represented by the area under the demand curve, and the amount they actually pay is represented by the area under the supply curve. The difference between these two areas is the consumer surplus, which is $10,000.

In the Figure Above, at the Market Price of $15