The price of the good in the market shown here is currently $\$ 2$.
The market for a good with a price of $\$ 2$

What letters represent total surplus if the current price of this good is $\$ 2$ ?
Choose 1 answer:
(A) $G$
(B) $A+B+C+D+E+F$
(C) $A+B+C+D+E+F+G$
(D) $C+E$
(द) $A+B+D+F$
Related content
Equilibrium, allocative efficiency and total surplus
Report a problem

Question

The price of the good in the market shown here is currently $\$ 2$.
The market for a good with a price of $\$ 2$

What letters represent total surplus if the current price of this good is $\$ 2$ ?
Choose 1 answer:
(A) $G$
(B) $A+B+C+D+E+F$
(C) $A+B+C+D+E+F+G$
(D) $C+E$
(द) $A+B+D+F$
Related content
Equilibrium, allocative efficiency and total surplus
Report a problem

Accepted Answer

∻Solution∻ ‖ a ⋮ Total Surplus: Total surplus in a market is the sum of consumer surplus and producer surplus. Consumer surplus is the area between the demand curve and the price level, up to the quantity sold. Producer surplus is the area between the supply curve and the price level, up to the quantity sold. ‖ ‖ b ⋮ Identifying Areas: At a price of $2, consumer surplus is the area above the price level and below the demand curve, from Q=0 to Q=3, which corresponds to areas A, B, and D. Producer surplus is the area below the price level and above the supply curve, from Q=3 to Q=7, which corresponds to areas E and F. ‖ ‖ c ⋮ Total Surplus Calculation: Total surplus is the sum of consumer surplus (A+B+D) and producer surplus (E+F). The point G represents the equilibrium but is not part of the surplus calculation as it is a single point where the supply and demand curves intersect. ‖ ∻Answer∻ ⚹ (द) $A+B+D+F$ ⚹ ∻Key Concept∻ ⚹ Total surplus is the sum of consumer surplus and producer surplus in a market. ⚹ ∻Explanation∻ ⚹ Total surplus at a price of $2 is represented by the areas A, B, D, and F, which are above and below the price level and within the quantity sold. ⚹◊What is the formula for calculating total surplus in a market?⍭ Generate me a similar question◊

Sia