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Quanity demand =40-P Quanity supply =P-4 How much is total consumer surplus ar the equilibrium price in this market?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 9SCQ: What would be the impact of imposing a price flour below the equilibrium price?

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Question

Quanity demand =40-P

Quanity supply =P-4

How much is total consumer surplus ar the equilibrium price 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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