Refer to Figure 9-2. Without trade, consumer surplus amounts to

A) $19,440.
B) $23,280.
C) $9,720.
D) $20,280.

Question

Refer to Figure 9-2. Without trade, consumer surplus amounts toA) $19,440.B) $23,280.C) $9,720.D) $20,280.

Shailey Holland-Penn · Accepted Answer

Final Answer : C, Explanation :  Consumer surplus is calculated as the area above the price level and below the demand curve, up to the quantity consumed. Without trade, we look at the domestic equilibrium where supply equals demand. The area representing consumer surplus is a triangle. To calculate the area of a triangle, use the formula (base * height) / 2.

Refer to Figure 9-2. Without trade, consumer surplus amounts to

A) $19,440.
B) $23,280.
C) $9,720.
D) $20,280.

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