Respuesta :
Answer:
$4.9 billion
Explanation:
A = (1/2)*bh
b = 140 billion
h = (0.25 - 0.18) = $0.07
A = (0.5)*(140)*(0.07) = 0.5*9.8 = $4.9 billion
The consumer surplus is created is: $4.2 billion
With the price floor at $0.18 per pound.
The consumer surplus is in the area that is below the demand curve but on the other hand it is above the price of $0.18:
Consumer surplus= [($0.25 − $0.18) × 120 billion]/2
Consumer surplus= ($0.07×120 billion)/2
Consumer surplus= $8.4 billion/2
Consumer surplus= $4.2 billion
Inconclusion The consumer surplus is created is: $4.2 billion.
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