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Suppose That Demand for and Supply of a Commodity in a Market

Question 8

Multiple Choice

Suppose that demand for and supply of a commodity in a market are shown on a graph with price on the vertical axis and quantity on the horizontal axis. The y-intercept of the demand curve is equal to $30. The equilibrium price and quantity are $20 and 300 units respectively. What is the total consumer surplus in the market?


A) $2,000
B) $1,300
C) $9,000
D) $3,000
E) $1,500

Correct Answer:

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