-In the figure above, if the market price is $12, then the total consumer surplus is
A) minimised.
B) $10.
C) $12.
D) $480.
E) $240.

Question

-In the figure above, if the market price is $12, then the total consumer surplus is
A) minimised. 
B) $10. 
C) $12. 
D) $480. 
E) $240.

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level, up to the quantity demanded. At a price of $12, the consumer surplus is represented by the triangular area under the demand curve above the price level. To calculate this, use the formula for the area of a triangle: 1/2 * base * height. The base is the quantity (40 units), and the height is the difference between the maximum price consumers are willing to pay ($18) and the market price ($12), which is $6. Therefore, the consumer surplus is 1/2 * 40 * 6 = $120. However, without seeing the figure, the correct calculation of consumer surplus cannot be determined, and the provided options and calculations might not directly apply. My response was based on a typical interpretation of such a scenario, but please refer to the specific details of your figure for accurate calculation.

-In the Figure Above, If the Market Price Is $12