At the equilibrium price, the total surplus( producer + consumer) is _______.

Question

BlackTom AI · Accepted Answer

The question asks for the total surplus at the equilibrium price, which is the sum of consumer surplus (CS) and producer surplus (PS) at the market-clearing point where supply equals demand.

First, I would identify the equilibrium price and quantity from the graph: locate the intersection of the demand (blue) and supply (red) curves. The equilibrium price is the price at that intersection, and the equilibrium quantity is the corresponding quantity.

Next, compute consumer surplus: CS is the area under the demand curve and above the equilibrium price, up to the equilibrium quantity. If the demand curve intercepts the price axis at Pmax when Q=0, then CS = 0.5 × (Pmax − Peq) × Qeq, assuming the demand curve is linear.

Then, compute producer surplus: PS is the area above the supply curve and below the equilibrium price, up to the equilibrium quantity. If the supply curve intercepts the price axis at Pmin when Q=0 (often 0 if the supply starts at origin for a simple linear model), then PS = 0.5 × (Peq − Pmin) × Qeq, again for the linear, single-interval case.

Total surplus = CS + PS. In a standard linear supply and demand diagram like this, you can read off the necessary intercepts and the equilibrium values from the graph and plug them into the triangular area formulas above.

Because the answer options were not provided in the list (the container shows an empty answer_options field), I cannot map these steps to a specific numerical calculation from the given options. If the stated correct numerical answer is $320, then the calculation would be one of the following typical patterns (depending on the exact intercepts):
- CS = 0.5 × (Pmax − Peq) × Qeq and PS = 0.5 × (Peq − Pmin) × Qeq such that their sum equals 320.

To proceed definitively, please provide the answer choices (the answer_options array) or share the exact equilibrium price and quantity derived from the graph. With those values, I can show the exact CS and PS calculations that sum to $320.

ECON 1023 (002) Midterm 2

At the equilibrium price, the total surplus( producer + consumer) is _______.

View Explanation

Log in for full answers

Similar Questions

The sum of consumer surplus and producer surplus is equal to

According to the lecture, economic welfare or value created represents:

Consider a perfectly competitive market at equilibrium. The equilibrium price defines

Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Tony experiences a

Consumer surplus is a gain from exchange, but producer surplus is a loss from exchange.

Figure 9-2Refer to Figure 9-2. The increase in total surplus resulting from trade is

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler

ECON 1023 (002) Midterm 2

At the equilibrium price, the total surplus( producer + consumer) is _______.

View Explanation

Log in for full answers

Similar Questions

The sum of consumer surplus and producer surplus is equal to

According to the lecture, economic welfare or value created represents:

Consider a perfectly competitive market at equilibrium. The equilibrium price defines

Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Tony experiences a

Consumer surplus is a gain from exchange, but producer surplus is a loss from exchange.

Figure 9-2​Refer to Figure 9-2. The increase in total surplus resulting from trade is

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

Figure 9-2Refer to Figure 9-2. The increase in total surplus resulting from trade is