Figure 7-3
-Refer to Figure 7-3.If the price of the good is $6,then consumer surplus is
A) $4.
B) $6.
C) $8.
D) $10.

Question

Figure 7-3 
-Refer to Figure 7-3.If the price of the good is $6,then consumer surplus is
A) $4. 
B) $6. 
C) $8. 
D) $10.

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level, up to the quantity purchased. If the price is $6, the consumer surplus is the area of the triangle formed by the demand curve, the price line at $6, and the vertical axis. Assuming the demand curve intersects the price axis at $10 and the quantity axis at 4 units, the consumer surplus is (1/2) * (10 - 6) * 4 = $8.

Figure 7-3 -Refer to Figure 7-3.If the Price of the Good Is