Question

The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market. Suppose the equilibrium price of

artichokes is $3 per pound and the equilibrium quantity is 100 pounds of artichokes per week.
Using the graph determine how much economic surplus is generated in the market each week.
4
Economic surplus: $

Answer 1

The economic surplus generated in the market each week is $150.

Step-by-step explanation:

The economic surplus is the total benefit received by the consumers and producers in a market. To determine the economic surplus, we need to find the area between the supply and demand curves up to the equilibrium quantity. In this case, the equilibrium price is $3 per pound and the equilibrium quantity is 100 pounds of artichokes per week. To find the economic surplus, we can find the area of the triangle formed by the equilibrium price, quantity, and the two axes:

Economic surplus = (1/2) * base * height

Economic surplus = (1/2) * ($3) * (100)

Economic surplus = $150 per week