Math Problem Statement
Solution
To solve the problem based on the given supply and demand graph, we need to calculate the consumer surplus, producer surplus, and total surplus.
Step 1: Identify the equilibrium point
The graph shows that the equilibrium quantity is 5, and the equilibrium price is $4.5. This is where the supply and demand curves intersect.
Step 2: Consumer Surplus Calculation
- Consumer surplus is the area between the demand curve and the price, up to the equilibrium quantity.
- The formula for the area of a triangle is:
- In this case, the height is the difference between the maximum price on the demand curve ($9) and the equilibrium price ($4.5): [ \text{Height} = 9
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Math Problem Analysis
Mathematical Concepts
Consumer Surplus
Producer Surplus
Total Surplus
Supply and Demand
Formulas
Consumer Surplus = 0.5 * Base * Height
Producer Surplus = 0.5 * Base * Height
Total Surplus = Consumer Surplus + Producer Surplus
Theorems
Basic Supply and Demand Theorem
Suitable Grade Level
Grades 10-12
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