-The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone) . If the price were zero, consumer surplus would equal

Question

-The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone). If the price were zero, consumer surplus would equal

Quizplus · Accepted Answer

Consumer surplus is the area under the demand curve and above the price level. If the price is zero, consumer surplus is the entire area under the demand curve, which is typically calculated as the area of a triangle: (1/2) * base * height. The base and height would be determined by the maximum quantity and price on the demand curve, respectively.

-The Above Figure Shows the Market Demand Curve for Mobile