Figure 7-4
-Refer to Figure 7-4.At the equilibrium price,consumer surplus is

Question

Figure 7-4 
-Refer to Figure 7-4.At the equilibrium price,consumer surplus is

Quizplus · Accepted Answer

At the equilibrium price, the consumer surplus can be calculated by finding the area of the triangle below the demand curve and above the equilibrium price. In this case, consumer surplus is equal to ($25 - $10) x (20 - 14) / 2 = $75. There are four consumers in the market, so the total consumer surplus is $75 x 4 = $300. Therefore, the correct answer is B.

Figure 7-4 -Refer to Figure 7-4.At the Equilibrium Price,consumer Surplus Is