Table 7-9

-Refer to Table 7-9.Both the demand curve and the supply curve are straight lines.At equilibrium,consumer surplus is

Question

Table 7-9
 
-Refer to Table 7-9.Both the demand curve and the supply curve are straight lines.At equilibrium,consumer surplus is

Quizplus · Accepted Answer

At equilibrium, the quantity demanded and quantity supplied are both 8 units. The equilibrium price is $8. Consumer surplus is the area above the price line and below the demand curve, up to the quantity purchased. The consumer surplus is the triangular area ($0.5 x 8 x 4), which is equal to $16. Therefore, the answer is C, $16.

Table 7-9 -Refer to Table 7-9.Both the Demand Curve and the Supply