Assume the Market Depicted in the Graph Is in Equilibrium

question 130

Multiple Choice

Assume the market depicted in the graph is in equilibrium. What is consumer surplus?

• A) $36
• B) $72
• C) $120
• D) $60

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Definitions:

Compounded Monthly

The calculation and addition of interest to the principal sum of a loan or deposit on a monthly basis.

Debt

An amount of money borrowed by one party from another under the condition that it is to be paid back at a later date, often with interest.

Spending

The act of using money to purchase goods or services.

Withdrawals

The act of taking money out from a bank account or investment.