Answer
the firm produces at Qd=Qs
where
Q= 10 units
P=$10
Consumer surplus is the area above price and below the demand
curve
CS=0.5*(y-axis intercept of the demand curve -P)*Q
=0.5*(14-10)*10
=$20
the consumer surplus is $20
Option 4
QUESTION 46 Figure: Understanding Surplus and Efficiency 16 Price (Figure: Understanding Surplus and Efficiency) In the...
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