Refer to Figure 4.4.1 above. The value of consumer surplus when price is $4 equals:

A) $21.
B) $24.
C) $45.
D) none of the above

Question

Refer to Figure 4.4.1 above. The value of consumer surplus when price is $4 equals:A)  $21.B)  $24.C)  $45.D)  none of the above

Jamiya Henderson · Accepted Answer

Final Answer : A, Explanation :  Consumer surplus is the area between the demand curve and the price level, up to the quantity demanded. If the price is $4, the consumer surplus is calculated as the area of the triangle formed by the demand curve, the price line at $4, and the vertical axis. The correct calculation based on the figure would yield a consumer surplus of $21.

Refer to Figure 4.4.1 above. The value of consumer surplus when price is $4 equals:

A) $21.
B) $24.
C) $45.
D) none of the above

Definitions

Learning Objectives

Learning Objectives

Related questions