Question

question 5
1 pts
suppose the graph above describes the demand in a market for doughnuts. suppose the price in the market is $3, then:

1. the quantity demanded is select
2. the consumer surplus is select

Explanation:

Step1: Find quantity - demanded

Locate $P = 3$ on the price - axis. Then, find the corresponding quantity on the demand curve. When $P=3$, the quantity demanded $Q = 5$.

Step2: Calculate consumer surplus

Consumer surplus is the area above the price line and below the demand curve. The demand curve is a step - function. The consumer surplus is the sum of the areas of the rectangles above the price line of $P = 3$.
The first rectangle has height $8 - 3=5$ and width $1$, area $A_1=5\times1 = 5$.
The second rectangle has height $6 - 3 = 3$ and width $1$, area $A_2=3\times1=3$.
The third rectangle has height $5 - 3 = 2$ and width $1$, area $A_3=2\times1 = 2$.
The fourth rectangle has height $4 - 3=1$ and width $1$, area $A_4=1\times1 = 1$.
The sum of the areas of these rectangles is $A=A_1 + A_2+A_3+A_4=5 + 3+2 + 1=11$.

Answer:

1. 5
2. 11