Use the following to answer question 26: Figure: Monthly Demand for Ice Cream Cones

-(Figure: Monthly Demand for Ice Cream Cones)The graph Monthly Demand for Ice Cream Cones shows one individual's linear monthly demand for ice cream cones.At $5 per cone,this individual will consume 10 cones in a month.How much consumer surplus does this consumer receive?
A) $100
B) $50
C) $150
D) $500

Question

Use the following to answer question 26: Figure: Monthly Demand for Ice Cream Cones

-(Figure: Monthly Demand for Ice Cream Cones)The graph Monthly Demand for Ice Cream Cones shows one individual's linear monthly demand for ice cream cones.At $5 per cone,this individual will consume 10 cones in a month.How much consumer surplus does this consumer receive?
A) $100 
B) $50 
C) $150 
D) $500

Quizplus · Accepted Answer

Consumer surplus is calculated as the area of the triangle formed between the demand curve and the price level. If the price is $5 and the consumer buys 10 cones, the consumer surplus is 0.5 * (base * height) = 0.5 * (10 * 10) = $50.

Use the Following to Answer Question 26: Figure: Monthly Demand