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Description: A consumer is willing to purchase an item for $30 but he gets item at a market price of $22. Calculate the consumer surplus.

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Economics

A consumer is willing to purchase an item for $30 but he gets item at a market price of $22. Calculate the consumer surplus.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

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

Problem 1SQP

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A consumer is willing to purchase an item for $30 but he gets item at a market price of $22. Calculate the consumer surplus.

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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