Learning 4 Jump to Alexandre Verville Score6192018 1155 PM 4

Learning 4 Jump to.. Alexandre Verville Score6/19/2018 11:55 PM 423.1/100 Ass Sapling Learning Consider the graph to the right. What is the value of the consumer surplus? Price (S) What is the value of the producer surplus? What is the value of the total (also called social oro economic) surplus? 0 23 4 6789 10 Quantity Prevcus ? GiveUp&View; Solution e checkAnswer @wextaEut

Solution

The value of the consumer surplus is the area below the demand curve and above the equilibrium price.

= 1/2 * 4.5 * 5 = 11.25

The value of producer surplus is the area above the supply curve and below the equilibrium price.

= 1/2 * 3.5 * 5 = 8.75

Total Surplus = Consumer Surplus + Producer Surplus

= 11.25 + 8.75 = 20