Figure: Consumer Surplus (Figure: Consumer Surplus) When the price of the product is $15, the
Consumer surplus is:
A)$416.
B)$208.
C)$13.
D)$15.

Question

Figure: Consumer Surplus  (Figure: Consumer Surplus) When the price of the product is $15, the
Consumer surplus is:
A)$416. 
B)$208. 
C)$13. 
D)$15.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the actual price they pay. In this case, the demand curve intersects the price axis at $20 and the quantity axis at 24 units. At a price of $15, the quantity demanded is 18 units. The area of the consumer surplus triangle is (1/2) x (20-15) x (24-18) = 18. Therefore, the consumer surplus is $18 x $11.56 (which is the average of the maximum price and actual price) = $208. Therefore, the correct choice is (B).

Figure: Consumer Surplus (Figure: Consumer Surplus) When the Price