In a market, demand is p = 20 - x and supply is p = 2 + 2x. Match each quantity at equilibrium in List I with its value in List II. | List I | List II | |---|---| | A. Consumer surplus | I. ₹84 | | B. Producer surplus | II. ₹18 | | C. Amount spent, p₀x₀ | III. ₹54 | | D. Total surplus | IV. ₹36 |

In a market, demand is p = 20 - x and supply…

In a market, demand is p = 20 - x and supply is p = 2 + 2x.

Question 66

HardOriginal question

In a market, demand is $p = 20 - x$ and supply is $p = 2 + 2x$ . Match each quantity at equilibrium in List I with its value in List II.

List I	List II
A. Consumer surplus	I. ₹84
B. Producer surplus	II. ₹18
C. Amount spent, $p_0x_0$	III. ₹54
D. Total surplus	IV. ₹36

A-IV, B-II, C-I, D-IIICorrect answerYour answerA-II, B-IV, C-III, D-ICorrect answerYour answerA-IV, B-II, C-III, D-ICorrect answerYour answerA-II, B-IV, C-I, D-IIICorrect answerYour answer

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CorrectNot quiteAnswer D

Correct answer: D

Equilibrium: $20 - x = 2 + 2x$ , so $x_0 = 6$ , $p_0 = 14$ , and $p_0x_0 = 84$ .
$CS = \frac{1}{2} \times 6 \times (20 - 14) = 18$ ; $PS = \frac{1}{2} \times 6 \times (14 - 2) = 36$ ; total $18 + 36 = 54$ .

Concept: Surpluses in one market
Typical timeTypical: 150 s
Your timeYours: —

The rule this testsProducer surplus

Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

In a market, demand is p = 20 - x and supply is p = 2 + 2x.

Question 66

Explanation