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Review the graph at right for a competitive market.
How much is the consumer​ surplus?
Consumer surplus is ​$

enter your response here ​(round your answer to two decimal ​places).
How much is the producer​ surplus?
Producer surplus is ​$

enter your response here ​(round your answer to two decimal ​places).

To calculate the **consumer surplus** and **producer surplus** from the graph, we need to consider the areas of the relevant triangles formed by the demand and supply curves (or marginal cost curve in this case) relative to the equilibrium price and quantity.

### Equilibrium:
- Equilibrium price: From the graph, the equilibrium price is where the demand (D) and marginal cost (MC) curves intersect, which is at **$45**.
- Equilibrium quantity: The corresponding quantity at this point is **45 units**.

### Consumer Surplus:
- **Consumer surplus** is the area of the triangle between the demand curve and the price level (up to the equilibrium quantity).
  - The highest price consumers are willing to pay (from the demand curve at quantity 0) is about **$90**.
  - The equilibrium price is **$45**.
  - The base of the triangle is the equilibrium quantity, **45** units.

  \[
  \text{Consumer Surplus} = \frac{1}{2} \times \text{Base} \times \text{Height} = \frac{1}{2} \times 45 \times (90 - 45)
  \]

  Simplifying:

  \[
  \text{Consumer Surplus} = \frac{1}{2} \times 45 \times 45 = \frac{1}{2} \times 2025 = 1012.50
  \]

### Producer Surplus:
- **Producer surplus** is the area of the triangle between the supply (MC) curve and the price level (up to the equilibrium quantity).
  - The lowest price producers are willing to accept (from the MC curve at quantity 0) is **$0**.
  - The equilibrium price is **$45**.
  - The base of the triangle is the equilibrium quantity, **45** units.

  \[
  \text{Producer Surplus} = \frac{1}{2} \times \text{Base} \times \text{Height} = \frac{1}{2} \times 45 \times (45 - 0)
  \]

  Simplifying:

  \[
  \text{Producer Surplus} = \frac{1}{2} \times 45 \times 45 = \frac{1}{2} \times 2025 = 1012.50
  \]

### Final Answer:
- **Consumer Surplus**: **$1012.50**
- **Producer Surplus**: **$1012.50**

Would you like further details or have any questions?

Here are 5 related questions to deepen your understanding:
1. How does a shift in the demand curve affect consumer surplus?
2. What would happen to producer surplus if the price was set above the equilibrium?
3. Can you explain why the area of the triangle represents surplus?
4. What happens to consumer and producer surplus in the case of price controls like a price ceiling?
5. How does an increase in marginal cost affect producer surplus?

**Tip:** Surplus areas (consumer and producer) are always calculated by finding the area of triangles or trapezoids on the supply and demand curves.

Review the graph at right for a competitive market. How much is the consumer​ surplus? Consumer surplus is ​$. How much is the producer​ surplus? Producer surplus is ​$.

Review the graph of a competitive market and calculate consumer and producer surplus. This problem involves finding the equilibrium price and quantity at $45 and 45 units, then using triangular area formulas to compute the consumer surplus ($1012.50) and producer surplus ($1012.50).

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