Based on the Table Below, What Is the Consumer Surplus

question 114

Multiple Choice

Based on the table below, what is the consumer surplus of the 2^nd unit consumed assuming this market reaches equilibrium? $\begin{array}{lcc}\underline{\text { Price } }&\underline{ \text { Quantity Demanded }} & \underline{\text { Quantity Supplied }} \\\$ 1.00 & 7 & 1 \\\$ 2.00 & 6 & 2 \\\$ 3.00 & 5 & 3 \\\$ 4.00 & 4 & 4 \\\$ 5.00 & 3 & 5 \\\$6.00 & 2 & 6 \\\$ 7.00 & 1 & 7\end{array}$

• A)$1.00
• B)$2.00
• C)$3.00
• D)$7.00
• E)$10.00

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Definitions:

Circulation Numbers

The total quantity of copies of a publication (such as a newspaper or a magazine) distributed in a given period.

Average Fixed Costs

Average fixed costs are calculated by dividing the total fixed costs by the quantity of output produced, showing cost per unit.

MC Curves

Marginal Cost Curves, which illustrate how the cost of producing one additional unit of a good varies as the quantity of production changes.

Gasoline Prices

The cost per unit volume of gasoline, which fluctuates based on factors like crude oil prices, taxes, demand, and supply.