Figure 7-5
-Refer to Figure 7-5.What is the consumer surplus if the price is $100?

Question

Figure 7-5 
-Refer to Figure 7-5.What is the consumer surplus if the price is $100?

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a product and the amount they actually pay. In this case, if the price is $100, consumers are willing to pay up to $150 for the product. Thus, the consumer surplus is $150 - $100 = $50. The total consumer surplus for all individuals is then calculated as the area of the triangle, which is (1/2) x $50 x 50 = $1,250. Since there are 2,000 consumers, the total consumer surplus is $1,250 x 2,000 = $2,500.

Figure 7-5 -Refer to Figure 7-5.What Is the Consumer Surplus If the Surplus