https://file.aiquickdraw.com/mathbot/file/1729558609565exttd6ph.jpg

If the price were P3, consumer surplus would be represented by the area
a.	A+B+C.
b.	A+B+C+D+H+F.
c.	A.
d.	D+H+F.

In the diagram provided, the consumer surplus is represented by the area between the demand curve and the price level, up to the quantity consumed.

Given that the price is set at \( P_3 \), the consumer surplus is the area above the price level \( P_3 \) and below the demand curve, up to the quantity \( Q_1 \).

### Consumer Surplus Explanation:
- **Consumer surplus** is the area between the demand curve and the price consumers actually pay. At price \( P_3 \), consumers are willing to pay up to the demand curve (the highest point), but they only pay \( P_3 \).
- The area of consumer surplus, therefore, is the triangle above \( P_3 \) and below the demand curve, which corresponds to the areas **A + B + C**.

Thus, the correct answer is:
**a. A + B + C**.

Would you like more details on how consumer surplus is calculated, or do you have any questions on this? 

Here are 5 related questions to deepen your understanding:
1. How would producer surplus be represented at price \( P_3 \)?
2. What happens to consumer surplus if the price drops to \( P_2 \)?
3. How is the total surplus (consumer + producer) calculated in this scenario?
4. What would occur if the market price were set above \( P_4 \)?
5. How does the area of deadweight loss relate to inefficient pricing?

**Tip:** The area of consumer surplus shrinks when the price increases, as fewer consumers are able to purchase the good at a higher price.

If the price were P3, consumer surplus would be represented by the area a. A+B+C. b. A+B+C+D+H+F. c. A. d. D+H+F.

Learn how to calculate consumer surplus when the price is set at P3, using a supply and demand graph. This problem involves understanding the area of consumer surplus, represented by A + B + C, and applies economic principles of market equilibrium.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation