Question

170 160 150 140 130 120 + 110 100 90 + Supply 80 + 70 60+ SO 40 Demand 30 20 10 2 4 8 10 12 14 16 18 20 22 24 26 28 30 Quanti

Borrower's surplus in the market for loanable funds is what? Hint: This is analogous to asking what is the consumer or producer's surplus...which one is it though?

a.

None of these

b.

200

c.

400

d.

800

e.

1600

0 0
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Answer #1

From the given figure of demand and supply in the market of loanable funds, the vorrower surplus will be exactly equal to the consumer surplus in the demand and supply graph

($) 150 D a CS לה 70 A Equilib oium (E) Qo 20 - rowers Borror Sooplus Bs= Area of ) DEA triangle {x base x height = x 20 x (

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