Sir Plus has a demand function for mead that is given by the equation D(p) = 100 - p. If the price of mead is $60, how much is Sir Plus's net consumer's surplus?
A) $40
B) $800
C) $1,600
D) $400
E) $3,900

Question

Quizplus · Accepted Answer

The consumer surplus is the area of the triangle formed by the demand curve and the price line. The demand at price $0 is 100 units, and at price $60, it is 40 units. The consumer surplus is (1/2) * base * height = (1/2) * 40 * 40 = $800.

Sir Plus Has a Demand Function for Mead That Is