Price (dollars per unit) 25 Market 20 Price 15 10 D 1,000 2,000 3,000 4,000 5,000 Quantity (units per year) In the figure above, at the market price of $15, the consumer surplus equals A) $30,000. B) $20,000. C) $40,000. D) $10.000.

Price (dollars per unit) 25 Market 20 Price 15 10 D 1,000 2,000 3,000 4,000 5,000 Quantity (units per year) In the figure above, at the market price of $15, the consumer surplus equals A) $30,000. B) $20,000. C) $40,000. D) $10.000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Price (dollars per unit)
25
Market
20
Price
15
10
D
1,000 2,000 3,000 4,000
5,000
Quantity (units per year)
In the figure above, at the market price of $15, the consumer surplus equals
A) $30,000.
B) $20,000.
C) $40,000.
D) $10,000.

Expert Solution

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Demand curve shows quantity demanded at different prices. It slopes downward and reflects inverse relationship between price and quantity.

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