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Consumer & Producer Surplus · Question 48 of 70

The figure shows the demand curve p = 24 - 2x and the market price ₹12.

Question 48

MediumOriginal question

The figure shows the demand curve p=24−2xp = 24 - 2x and the market price ₹12. What is the area of the shaded region, the consumer surplus?

Demand curve p = 24 − 2x falling from (0, 24), a dashed price line p = 12, meeting at (6, 12); the triangle between the curve and the price line from x = 0 to 6 is shaded.
Options for question 48

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. The market clears at x0=6x_0 = 6, p0=12p_0 = 12.

  2. CS=∫06(24−2x) dx−12×6=108−72=36CS = \int_0^{6} (24 - 2 x)\,dx - 12 \times 6 = 108 - 72 = 36.

Worth noting

₹72 is the rectangle under the price line, what consumers pay.

Concept
Reading consumer surplus from a figure
Typical time
90 s
Your time
—
The rule this testsConsumer surplus
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Ten questions from Consumer & Producer Surplus, at your own pace.

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