Use the following to answer question
Figure: Determining Surplus 5
-(Figure: Determining Surplus 5)According to the graph,at equilibrium,total surplus is:

Question

Use the following to answer question 
Figure: Determining Surplus 5 
-(Figure: Determining Surplus 5)According to the graph,at equilibrium,total surplus is:

Quizplus · Accepted Answer

At equilibrium, the total surplus is the sum of consumer surplus and producer surplus. Consumer surplus is the area below the demand curve and above the equilibrium price, which is a triangle with a base of 40 units and a height of $10. Producer surplus is the area above the supply curve and below the equilibrium price, which is also a triangle with a base of 40 units and a height of $5. Therefore, the total surplus is the sum of these two triangles, which is $600.

Use the Following to Answer Question