(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $3,the total value of consumer surplus is equal to:
A)$12.
B)$26.
C)$10.
D)$21.

Question

Quizplus · Accepted Answer

The total value of consumer surplus is equal to the area below the demand curve and above the price line. In this case, the demand curve is a downward sloping line, and the price line is a horizontal line at $3. The area below the demand curve and above the price line is a triangle with a base of 10 units and a height of $2. Therefore, the total value of consumer surplus is $10.

(Table: Willingness to Pay for Peanuts)Using the Table Willingness to Pay