Total consumer surplus in equilibrium is $_________________.Total producer surplus in equilibrium is $______________.The net gain to society created by the market for good X is $__________________.

Question

Quizplus · Accepted Answer

Total consumer surplus in equilibrium is the area below the demand curve and above the equilibrium price, which is a triangle with a base of 100 and a height of 20, so it is $100 * 20 / 2 = $1000. Total producer surplus in equilibrium is the area above the supply curve and below the equilibrium price, which is also a triangle with a base of 100 and a height of 15, so it is $100 * 15 / 2 = $750. The net gain to society created by the market for good X is the sum of consumer surplus and producer surplus, which is $1000 + $750 = $1750.

Total Consumer Surplus in Equilibrium Is $_________________