Answered: Suppose demand for a good is QD = 100 -…

Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the consumer surplus? a. 200 b. 400 c. 600 d. 800

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency

Problem 2SQ

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Question

Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the consumer surplus?

a. 200

b. 400

c. 600

d. 800

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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