The above graph indicates Robert’s demand for ice-cream in a year. What is the consumersurplus of Robert when he consumes 40 ice-creams at Rs. 8?a. 253b. 245c. 565d. 320 Price2422201816141210864NO2005 10Demand for Ice Cream35,815 20 25 30 35 40Quantity of Ice Creams Demanded45505560

Consumer and producer surpluses are economic terminologies used to gauge market health by examining…

Answered: Price 2228446 20 18 16 14 12 10 8 6 4 2…

Price 2228446 20 18 16 14 12 10 8 6 4 2 0 0 5 10 Demand for Ice Cream 35,8 15 20 25 30 35 40 45 Quantity of Ice Creams Demanded 50 55 60

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

The above graph indicates Robert’s demand for ice-cream in a year. What is the consumer

surplus of Robert when he consumes 40 ice-creams at Rs. 8?

a. 253

b. 245

c. 565

d. 320

Price
24
22
20
18
16
14
12
10
8
6
4
NO
2
0
05 10
Demand for Ice Cream
35,8
15 20 25 30 35 40
Quantity of Ice Creams Demanded
45
50
55
60

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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