-The above figure shows the market for steel ingots.What is the change in consumer surplus if the market switches from competitive equilibrium to social optimum?

Question

Quizplus · Accepted Answer

The change in consumer surplus when moving from a competitive equilibrium to a social optimum is represented by the area between the demand curve and the new price level up to the socially optimal quantity. This area forms a triangle. To calculate the area of this triangle, we use the formula for the area of a triangle, which is 1/2 * base * height. The base of the triangle is the difference in quantity between the competitive equilibrium and the social optimum, and the height is the difference in price. Without the specific values from the figure, we can't calculate the exact area, but based on the options provided and typical outcomes when moving to a social optimum (which usually involves reducing negative externalities and thus increasing consumer surplus), the correct answer is chosen from the given options.

-The Above Figure Shows the Market for Steel Ingots