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Figure: Supply and Demand 4
-(Figure: Supply and Demand 4) Refer to the figure. If the good is purchased by those with the highest willingness to pay, what is the value of consumer surplus in the figure at the price ceiling of $8?
A) $54
B) $136
C) $36
D) $45

Question

Use the following to answer questions:
Figure: Supply and Demand 4 
-(Figure: Supply and Demand 4) Refer to the figure. If the good is purchased by those with the highest willingness to pay, what is the value of consumer surplus in the figure at the price ceiling of $8?
A) $54 
B) $136 
C) $36 
D) $45

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 price ceiling is $8, and the demand curve shows that consumers are willing to pay up to $12 for the good. Therefore, consumer surplus is $12 - $8 = $4.

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