HOMEWORK SYSTEM IS IN BETA AND ANSWERS PROVIDED BY SYSTEM IS

HOMEWORK SYSTEM IS IN BETA AND ANSWERS PROVIDED BY SYSTEM IS NOT ALWAYS CORRECT. USE PROVIDED ANSWER AS A GUIDE BUT DO NOT TAKE IT SERIOUSLY.

Solution

The consumer surplus is the area between the demand curve and the market price at that particular price. So in this case the demand curve has a vertical intercept of (0, 85). There is a horizontal intercept of (10.97, 0). At the price of 69 we get the intercept with the demand curve as (0, 3.35). So the consumer surplus is 1/2*3.35*(85-59) =43.55.