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Calculate the consumer surplus in the market for gasoline
if the market price is $3.50.

Consumer surplus = $

million

To calculate the consumer surplus in this gasoline market, we need to analyze the given demand and price lines on the graph.

### Step-by-Step Solution:

1. **Identify the Market Price**: The market price, as shown in the graph, is $3.50 per gallon.

2. **Determine the Demand Line's Intercepts**:
   - The demand curve intersects the y-axis (Price) at $6.00 per gallon. This point represents the maximum price at which consumers are willing to buy any gasoline.
   - The demand curve intersects the x-axis (Quantity) at 480 million gallons. This point represents the quantity demanded when the price is $0.

3. **Calculate the Consumer Surplus**:
   Consumer surplus is the area of the triangle between the demand curve and the price line, from the price level up to the highest price consumers would pay.

   - **Height of the Triangle**: This is the difference between the highest price consumers would pay ($6.00) and the market price ($3.50).
     \[
     \text{Height} = 6.00 - 3.50 = 2.50
     \]

   - **Base of the Triangle**: The base is the quantity where the price line intersects the demand curve, which occurs at 360 million gallons.

4. **Calculate the Area of the Triangle** (Consumer Surplus):
   \[
   \text{Consumer Surplus} = \frac{1}{2} \times \text{Base} \times \text{Height}
   \]
   \[
   \text{Consumer Surplus} = \frac{1}{2} \times 360 \times 2.50 = 450 \text{ million dollars}
   \]

### Answer:
The consumer surplus is **$450 million**.

Would you like a detailed explanation of each step or have any questions?

### Related Questions:
1. What would happen to consumer surplus if the market price increased to $4.00?
2. How is consumer surplus affected if the demand curve becomes more elastic?
3. Can consumer surplus exist if the price is at the highest point consumers would pay ($6 in this case)?
4. What does the area above the consumer surplus triangle represent?
5. How would an increase in supply affect the consumer surplus in this market?

### Tip:
Consumer surplus decreases as the market price increases, reducing the area between the demand curve and the price line.

Calculate the consumer surplus in the market for gasoline if the market price is $3.50.

Discover how to calculate consumer surplus in the gasoline market when the price is set at $3.50 per gallon. This problem involves analyzing the demand curve and applying the area of a triangle formula. Perfect for high school students in Grades 11-12.

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