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Consumer & Producer Surplus · Question 47 of 70

Question 47

MediumOriginal question

The demand function is p=100−5xp = 100 - 5 x and the market price is ₹60. What is the consumer surplus?

Options for question 47

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. The market clears at x0=8x_0 = 8, p0=60p_0 = 60.

  2. CS=∫08(100−5x) dx−60×8=640−480=160CS = \int_0^{8} (100 - 5 x)\,dx - 60 \times 8 = 640 - 480 = 160.

Worth noting

₹320 forgets the 12\frac{1}{2} of the triangle: base 8, height 40.

Concept
Consumer surplus as a triangle
Typical time
90 s
Your time
—
The rule this testsConsumer surplus
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