Question

demand for amusement park tickets
legend
● demand, d₂
● demand, d₁
instructions: enter your response as a whole number.
b. calculate the total consumer surplus in the amusement park market if tickets sell for $12 each. $ per year.

Explanation:

Step1: Recall consumer - surplus formula

Consumer surplus is the area of the triangle above the price line and below the demand curve. The formula for the area of a triangle is $A=\frac{1}{2}\times base\times height$.

Step2: Identify base and height

The demand curve intersects the price - axis at $P = 36$. The price of tickets is $P = 12$. So the height of the triangle ($h$) is $36 - 12=24$. When $P = 12$, from the demand - curve, the quantity demanded ($Q$) is 1.2 (assuming the quantity values on the x - axis are as shown). So the base ($b$) of the triangle is 1.2.

Step3: Calculate consumer surplus

Using the area formula $A=\frac{1}{2}\times b\times h$, we substitute $b = 1.2$ and $h = 24$. So $A=\frac{1}{2}\times1.2\times24 = 14.4$. Since we need a whole number, we round it to 14.

Answer:

14