Figure 7-19
-Refer to Figure 7-19.At the equilibrium price,total surplus is
A)$125.
B)$450.
C)$250.
D)$500.

Question

Figure 7-19 
-Refer to Figure 7-19.At the equilibrium price,total surplus is
A)$125. 
B)$450. 
C)$250. 
D)$500.

Quizplus · Accepted Answer

At the equilibrium price, consumer surplus is the area above the price line and below the demand curve (triangle AEF) and producer surplus is the area below the price line and above the supply curve (triangle BED). Therefore, total surplus is the sum of consumer and producer surplus, which is (1/2)(10)(25) + (1/2)(10)(25) = $250.

Figure 7-19 -Refer to Figure 7-19.At the Equilibrium Price,total Surplus Is