-Refer to the diagram above.When quantity supplied and quantity demanded are equal,consumer surplus is equal to
A)$600.
B)$1,200.
C)$1,400.
D)$2,000.
E)$2,400.

Question

-Refer to the diagram above.When quantity supplied and quantity demanded are equal,consumer surplus is equal to
A)$600. 
B)$1,200. 
C)$1,400. 
D)$2,000. 
E)$2,400.

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. In this case, the equilibrium price is $12, and the quantity demanded and supplied is 100 units. The consumer surplus is the area below the demand curve and above the equilibrium price, which is a triangle with a base of 100 units and a height of $2. The area of a triangle is (1/2) * base * height, so the consumer surplus is (1/2) * 100 * 2 = $100.

-Refer to the Diagram Above