Question 14 25 points ons ns saved This Graph illustrates t

^ Question 14 (2.5 points) ons ns saved This Graph illustrates the supply and demand for hats in 20 price Supply 2016 12.95 6 9.10- 400 fa Demand 2016 1,970 3,345 3,63 12 In equilibrium, Total Consumers\' Surplus would be 1) negative 2) equal to \'area (g): 3) equal to \'area (a)+(b)+(e) 4) equal to \"area (c)+(f)+(d) 15

Solution

Equilibrium is occured at the price of $9.10 and quantity of 3345 units. Consumer surplus is the area above market price and below the demand curve. So the consumer surplus at equilibrium is (a+b+e). Option 3 is correct.