Figure 7-12
-Refer to Figure 7-12.At the equilibrium price,consumer surplus is

Name: Figure 7-12 -Refer to Figure 7-12.At the equilibrium price,consumer surplus is
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Question

Figure 7-12 
-Refer to Figure 7-12.At the equilibrium price,consumer surplus is

Quizplus · Accepted Answer

Consumer surplus is the area above the equilibrium price and below the demand curve. In this diagram, at the equilibrium price of $40, the quantity demanded is 15 units. So the consumer surplus is (1/2) x (15) x (40-20) = $300. Therefore, the correct choice is C.

Figure 7-12 -Refer to Figure 7-12.At the Equilibrium Price,consumer Surplus Is