The figure to the right illustrates the market for a breastâ cancer-fighting drug, without which breast cancer patients cannot survive. What is the consumer surplus
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in this market?
Consumer surplus is equal to
A.
price times quantity.
B.
âone-half of price times quantity.
C.
infinity.
D.
zero.
E.
None of the above.
How does it differ from the consumer surplus in the markets you have studied up to this point? Unlike in most other examples, in this case,
A.
the highest price a consumer is willing to pay is infinite.
B.
consumer surplus is equal to producer surplus.
C.
the highest price a consumer is willing to pay is greater than the price the consumer actually pays.
D.
consumer surplus is positive.
E.
the highest price a consumer is willing to pay is equal to the price the consumer actually pays.
00QuantityPrice
DemandDemand
SupplySupply
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