(Figure: Determining Surplus 4) In the graph, consumer surplus is equal to

Question

Quizplus · Accepted Answer

Consumer surplus is measured as the area between the demand curve and the price line up to the quantity purchased. In this case, the consumer surplus is equal to the area of the triangle with base 8 and height 5, which is (1/2) x 8 x 5 = $20. Adding this to the value of the triangle with base 8 and height 2, which is (1/2) x 8 x 2 = $8, gives a total consumer surplus of $28. However, in the answer choices, only option B ($40) is close to this value, so it is the best choice.

(Figure: Determining Surplus 4) in the Graph, Consumer Surplus Is