(Figure: The Market for Beyond Meat Hamburgers) The figure The Market for Beyond Meat Hamburgers shows the weekly market for Beyond Meat hamburgers in Kansas City, Missouri. If the price of a burger is $2, consumer surplus will equal:

A)$650.
B)$400.
C)$225.
D)$450.

Question

(Figure: The Market for Beyond Meat Hamburgers) The figure The Market for Beyond Meat Hamburgers shows the weekly market for Beyond Meat hamburgers in Kansas City, Missouri. If the price of a burger is $2, consumer surplus will equal:
 ​
A)$650. 
B)$400. 
C)$225. 
D)$450.

Quizplus · Accepted Answer

To calculate consumer surplus, we need to find the area between the demand curve and the price line up to the quantity demanded at that price point, which in this case is 50 burgers. The height of the demand curve at this point is $4, so the area of the triangle is (1/2)*50*$2=$50. Thus, consumer surplus at a price of $2 is $50*(2-0)=$100. Since there are 150 customers willing to buy at this price, total consumer surplus is 150*$100=$15,000. However, the question is asking for consumer surplus per burger, so we divide by the quantity demanded: $15,000/75=$200. Finally, since the price is $2, we subtract this amount from the maximum price customers are willing to pay, which is $4, to get the final answer of $4-$2=$2. Therefore, the correct answer is C) $225.

(Figure: the Market for Beyond Meat Hamburgers) the Figure the Market