Refer to Figure 19.1.The total consumer surplus in this market is equal to
A)$950.
B)$900.
C)$850.
D)$800.

Question

Refer to Figure 19.1.The total consumer surplus in this market is equal to
A)$950. 
B)$900. 
C)$850. 
D)$800.

Quizplus · Accepted Answer

To calculate consumer surplus, we need to find the area between the demand curve and the price line up to the quantity bought. In this case, the quantity sold is 10, and the price is $95. The area between the demand curve and the price line (shaded region in the graph) is a triangle with a base of 10 (quantity) and a height of $(110-95) = 15$ (the difference between the highest price and the actual price paid).

Therefore, Consumer Surplus = $(1/2) 	imes 10 	imes 15 = $75 per buyer.

There are 12 buyers in this market, so the total consumer surplus is $75 x 12 = $900.

Therefore, the correct answer is B.