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Here is the Gadget market: Quantity Demanded = 100 - P Quantity Supplied = 9P What is consumer surplus in this market?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section3.7: A Market Supply And Demand Analysis

Problem 1YTE

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Question

Here is the Gadget market:

Quantity Demanded = 100 - P

Quantity Supplied = 9P

What is consumer surplus in this market?

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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