The demand curve for product X is given by Q_X = 50 - 2P_X.How much consumer surplus do consumers receive when P_X = $5?

Name: The demand curve for product X is given by Q X = 50 - 2P X .How much consumer surplus do consumers receive when P X = $5?
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Consumer surplus is calculated as the area of the triangle above the price level and below the demand curve. The demand curve intercepts the price axis at P = 25 (when Q = 0). At P = $5, Q = 40. The consumer surplus is (1/2) * (25 - 5) * 40 = $400.

The Demand Curve for Product X Is Given by QX

The Demand Curve for Product X Is Given by Q_X