Figure 5.3 Figure 5.3 shows the market for tiger shrimp.The market is initially in equilibrium at a price of $15 and a quantity of 80.Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 5.3.The value of consumer surplus at a price of $18 is

Question

Figure 5.3  Figure 5.3 shows the market for tiger shrimp.The market is initially in equilibrium at a price of $15 and a quantity of 80.Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 5.3.The value of consumer surplus at a price of $18 is

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. At a price of $18, consumers are willing to pay up to $24 for the good, so the consumer surplus is $6.

Figure 53 Figure 5