Figure SEQ Figure 1
-Consider Figure 1.If the government would impose a price ceiling of $6 what is the amount of the consumer surplus?

Question

Figure SEQ Figure  1 
-Consider Figure 1.If the government would impose a price ceiling of $6 what is the amount of the consumer surplus?

Quizplus · Accepted Answer

A price ceiling set at $6 would result in a consumer surplus represented by the area under the demand curve and above the price level up to the quantity demanded at that price. Without the specific details of Figure 1, a general explanation is that the consumer surplus is the area of a triangle or a trapezoid, depending on the exact shapes and positions of the supply and demand curves. The correct answer must be determined based on the specific graphical details provided in Figure 1, which are not available here. However, assuming choice C is correct, it implies that the area representing consumer surplus up to a price of $6 is valued at $50. This calculation would typically involve the dimensions of the area under the demand curve above the price ceiling.