Use the Following Figure to Answer the Following Questions

question 2

Multiple Choice

Use the following figure to answer the following questions :

-Determine the level of consumer surplus at the market equilibrium.

• A) 16,875
• B) 11,250
• C) 7,500
• D) 3,750

---

Definitions:

Toll-free Telephone Line

A phone number that allows callers to reach businesses without incurring charges, often used for customer support.

Period Cost

Expenses that are not directly tied to the production process and are incurred regardless of the volume of production, such as selling, general, and administrative expenses.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to maintenance, utilities, and equipment depreciation.

Raw Materials Inventory

This represents the stock of basic materials awaiting to be processed into finished goods.