Figure 9-5

-Figure 9-5 shows the domestic market for calculators in Haiti.What is consumer surplus in Haiti before trade

Question

Figure 9-5
 
-Figure 9-5 shows the domestic market for calculators in Haiti.What is consumer surplus in Haiti before trade

Quizplus · Accepted Answer

Consumer surplus is the difference between the highest price a consumer is willing to pay for a good or service and the actual price they pay. Using the graph, we can see that the demand curve intersects the Y-axis at $150 and the supply curve intersects at $600. The equilibrium price is where the two curves intersect, which is $300. Consumer surplus is the area above the equilibrium price and below the demand curve. Therefore, consumer surplus before trade is 0.5 x (300-150) x 30 = $2250. Choice C is the correct answer.

Figure 9-5 -Figure 9-5 Shows the Domestic Market for Calculators in Haiti.What