Graph 9-6

-According to Graph 9-6, consumer surplus after trade would be:
A) $10 000
B) $12 000
C) $20 000
D) $24 000

Question

Graph 9-6
 
-According to Graph 9-6, consumer surplus after trade would be:
A) $10 000 
B) $12 000 
C) $20 000 
D) $24 000

Quizplus · Accepted Answer

Consumer surplus is the area below the demand curve and above the price line. In this case, the consumer surplus is the area of the triangle formed by the demand curve, the price line, and the vertical line at the equilibrium quantity. The area of this triangle is 1/2 * (base) * (height) = 1/2 * (12,000 - 10,000) * (20 - 10) = $10,000.

Graph 9-6 -According to Graph 9-6, Consumer Surplus After Trade Would Be