NARRBEGIN: Exhibit 6-9
Exhibit 6-9

-At point a in Exhibit 6-9, consumer surplus is
A) $0
B) $5
C) $6
D) $20
E) $26

Question

NARRBEGIN: Exhibit 6-9
Exhibit 6-9
 
-At point a in Exhibit 6-9, consumer surplus is
A) $0 
B) $5 
C) $6 
D) $20 
E) $26

Quizplus · Accepted Answer

At point a, consumer surplus is the area between the demand curve and the price line up to the quantity consumed, which is a triangle with a base of 2 (the horizontal distance from the quantity axis to point a) and a height of 3 (the vertical distance from point a to the demand curve). Therefore, the consumer surplus at point a is (1/2)(2)(3) = $3. Since the price at point a is $9, the total amount paid by the consumer is $6 (2 x $9 = $18), so the consumer surplus is $6 ($18 - $12 = $6).

NARRBEGIN: Exhibit 6-9 Exhibit 6-9