The supply and d in the market for used tablets. Use the black point (plus symbo

Question

The supply and d in the market for used tablets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of used tablets. Then use the green point (triange area representing consumer surplus, and use the purple point (dlamond symbol) to fill the area representing producer surplus. of used tablets. Then use the green point (triangle symbol) to fill the Equilibrium 210 Consumer Surplus 180 Producer Surplus 30 Supply 0 30 0 90 120 150 180 210 240 270 300 QUANTITY (Milions of used tablets) Total surplus in this market is s

Explanation / Answer

The market equilibrium is where the demand and supply curves intersect and this occurs at a quantity of 120 million tablets at a price of $150 per used tablet. The consumer surplus is the area between the demand curve and the market price. The consumer surplus here will be CS=1/2*120*150= $9 billion. The producer surplus is the area between the supply curve and the market price. The producer surplus here is PS=1/2*120*120= $7.2 billion.Total surplus is this 7.2 + 9 = $16.2 billion.

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