The graph shows the market 101 shrimp. Draw a shape that represents the consumer

Question

The graph shows the market 101 shrimp. Draw a shape that represents the consumer surplus from shrimp. label it CS. Draw a shape that represents the producer surplus from shrimp Label it PS. Consumer surplus from shrimp equals S 240 Producer surplus from shrimp equals S 80. The market for shrimp is efficient because at the market equilibrium marginal benefit equals marginal cost, and total surplus is maximized the market is producing the maximum possible quantity given the constraints on technology and capital consumer surplus is greater than producer surplus consumer surplus is greater than zero

Explanation / Answer

Chosen option is correct. However, consumer surplus and Producer surplus are incorrect.

Formula = 0.5*base*height

CS = 0.5*40*(9-3)= $120

PS = 0.5*40*(3-1)= $40

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