Figure 9-5

-Refer to Figure 9-5.Without trade,consumer surplus amounts to

Question

Figure 9-5
 
-Refer to Figure 9-5.Without trade,consumer surplus amounts to

Quizplus · Accepted Answer

Consumer surplus is the difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay. In this case, without trade, consumer surplus is the area below the demand curve and above the equilibrium price. Using the graph, we can calculate this area as a triangle with base 46 and height 15.5, which gives us (1/2)(46)(15.5) = $367.50. Therefore, the correct answer is C.

Figure 9-5 -Refer to Figure 9-5.Without Trade,consumer Surplus Amounts to