Price Is $50 and Quantity Demanded Is 2,000 Units at Point

question 25

Multiple Choice

Price is $50 and quantity demanded is 2,000 units at point A on a linear demand curve. The linear supply curve intersects the demand curve at point B, which is at a price of $30 and 3,000 units. Which of the following statements is true?

• A) Moving from point A to point B causes consumer surplus to rise by $50,000.
• B) Moving from point A to point B causes consumer surplus to rise by $10,000.
• C) Moving from point B to point A causes consumer surplus to rise by $10,000.
• D) Moving from point B to point A causes consumer surplus to rise by $50,000.

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Definitions:

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