Question

Consider the accompanying supply and demand graph. A supply and demand graph with quantity on the horizontal axis which runs from 0 to 10 by increments of 1 and price in dollars on the vertical axis which runs from 0 to 9 in increments of 1 dollar. The demand curve is negatively sloped and intersects the price axis at 9 dollars. The supply curve is positively sloped and intersects the price axis at 1 dollar. The two curves intersect at a quantity of 5 and a price of 4. 50 dollars. What is the value of consumer surplus?.

Answer 1

The consumer surplus is 11.25.

What is consumer surplus?

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

What is the consumer surplus?

The consumer surplus on a graph can be determined by calculating the area of a triangle.

Area of a triangle = 1/2 x base x height

1/2 x 5 x (9 - 4.5) = 11.25

Please find attached the graph used to answer this question. To learn more about consumer surplus, please check: https://brainly.com/question/25816093