Given the demand curve in Figure 5-24, explain how consumer’s surplus is calculated.
What will be an ideal response?
The area under the demand curve above market price is the consumer’s surplus, equal in dollar terms to $36. It represents additional value above market cost for which the consumer does not have to pay.
Economics
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The above figure shows supply and demand curves for apartment units in a large city. At the unregulated equilibrium, producer surplus will be
A) d. B) d + e. C) d + g. D) d + c + g.
Economics
The market labor-supply curve has all of the following properties except it:
A. is always upward sloping. B. reflects people's willingness to work more when wages are higher. C. shows the relationship between the price of labor and the quantity supplied. D. shifts with changes in the opportunity cost for work
Economics