Question

please help and explain..

Figure 4-1 Price (dollars per burrito) $8.00 250 200 1.50 1.00 Demand 0 Quantity burrita) Figure 4-1 shows Arnold's demand curve for burritos, Refer to Figure 4-1. If the market price is $1.50, what is Arnold's consumer surplus? $3.00 O $1.50 $4.75 $2.25

Answer 1

Answer

32.25

Price (dollars per burrito) $3.00 2.50 2.00 1.50 1.00 Demand 2 Quantity burritos)

The consumer surplus is the area under the demand curve and above the market price, shaded in blue.

consumer surplus = 0.5*3*(3-1.50) .... Area of triagle formula

=$2.25

^{_{(Please consider giving an upvote if you fid it useful)}}