-The above figure shows supply and demand curves for apartment units in a large city.If the city government passes a law that establishes $350 per month as the legal maximum rent,consumer surplus will be
A)a.
B)a + b + f.
C)a + b + c.
D)a + b + c + f + g.

Question

-The above figure shows supply and demand curves for apartment units in a large city.If the city government passes a law that establishes $350 per month as the legal maximum rent,consumer surplus will be
A)a. 
B)a + b + f. 
C)a + b + c. 
D)a + b + c + f + g.

Quizplus · Accepted Answer

At the legal maximum rent of $350, the quantity supplied is Qs and the quantity demanded is Qd. Consumer surplus is the area below the demand curve and above the price line, which is equal to a + b + c.

-The Above Figure Shows Supply and Demand Curves for Apartment