Figure 7-3
-Refer to Figure 7-3.At the equilibrium price,consumer surplus is
A) $600.
B) $900.
C) $1,500.
D) $1,800.

Question

Figure 7-3 
-Refer to Figure 7-3.At the equilibrium price,consumer surplus is
A) $600. 
B) $900. 
C) $1,500. 
D) $1,800.

Quizplus · Accepted Answer

At the equilibrium price, consumer surplus is the area below the demand curve and above the equilibrium price, up to the quantity purchased. In this case, the equilibrium price is $50 and the quantity purchased is 30. Therefore, consumer surplus is (1/2)(30)(70-50) = $900.

Figure 7-3 -Refer to Figure 7-3.At the Equilibrium Price,consumer Surplus Is