Assume the Market Depicted in the Graph Is in Equilibrium

question 70

Multiple Choice

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

• A)$10
• B)$15
• C)$20
• D)$30

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Definitions:

Total Willingness to Pay

The maximum amount an individual or group is willing to pay for a good or service, reflecting the total value they derive from it.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others, examples include public parks and national defense.

Nonrival Consumption

A characteristic of certain goods where the consumption by one individual does not reduce availability to others, typical of public goods.

Nonexcludable

A characteristic of a good or service that does not allow the provider to prevent its use by individuals who have not paid for it.