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Consumer & Producer Surplus · Question 61 of 70

The figure shows the supply curve p = 6 + 3x and the market price ₹18.

Question 61

MediumOriginal question

The figure shows the supply curve p=6+3xp = 6 + 3x and the market price ₹18. What is the area of the shaded region, the producer surplus?

Supply curve p = 6 + 3x rising from (0, 6), a dashed price line p = 18, meeting at (4, 18); the triangle between the price line and the curve from x = 0 to 4 is shaded.
Options for question 61

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. The market clears at x0=4x_0 = 4, p0=18p_0 = 18.

  2. PS=18×4−∫04(3x+6) dx=72−48=24PS = 18 \times 4 - \int_0^{4} (3 x + 6)\,dx = 72 - 48 = 24.

Worth noting

₹48 forgets the 12\frac{1}{2} of the triangle: base 4, height 12.

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

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