Final answer:
The consumer surplus is calculated as the area of the triangle above the market price and below the demand curve. With the demand curve p = 30 - qd and a market price of $15, the consumer surplus in the burritos market is found to be $112.50. Therefore, the consumer surplus in the burritos market is $112.50.
Step-by-step explanation:
When considering the question, "Suppose the demand curve for the burritos market is p = 30 – qd and consumers have to pay $15 per burrito. What is the consumer surplus?", we use the concept of consumer surplus to calculate the difference between what consumers are willing to pay for a good and what they actually pay for it. To find the consumer surplus, we need to look at the area above the market price and below the demand curve.
In this scenario, the demand curve is given by the equation p = 30 – qd. The market price that consumers have to pay is $15 per burrito. To find the quantity demanded at the market price, we set p to 15:
- 15 = 30 – qd
- qd = 30 – 15
- qd = 15
So, the quantity demanded at a price of $15 is 15 burritos. The consumer surplus is the area of the triangle formed by the demand curve, the y-axis, and the line p = 15. The formula for the area of a triangle is ½ * base * height. Here, the base is the quantity demanded (15 burritos) and the height is the difference between the maximum price consumers are willing to pay (p when qd is 0, which is $30) and the market price of $15.
The calculation of consumer surplus is as follows:
- Consumer Surplus = ½ * 15 * (30 – 15)
- Consumer Surplus = ½ * 15 * 15
- Consumer Surplus = ½ * 225
- Consumer Surplus = $112.50
Therefore, the consumer surplus in the burritos market is $112.50.