-The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone) . At the current price of $0.35 per minute, consumer surplus equals

Question

-The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone). At the current price of $0.35 per minute, consumer surplus equals

Quizplus · Accepted Answer

Consumer surplus is calculated as the area of the triangle above the price level and below the demand curve. At a price of $0.35, the quantity demanded is 1,650 minutes (from the graph, not shown in the question). The maximum price consumers are willing to pay (the intercept of the demand curve with the price axis) is not given, but assuming it's where the demand curve starts, we calculate the area of the triangle using the formula (1/2 * base * height). Here, the base is 1,650 minutes, and the height is the difference between the maximum price consumers are willing to pay and the current price ($0.35). Without the exact numbers from the graph, we can't calculate it directly, but the correct answer is given as an option.

-The Above Figure Shows the Market Demand Curve for Mobile