The consumer surplus is is the area of the from the market price ($120) up to the demand curve and over to the equilibrium quantity of 120.
The consumer surplus is the area of a triangle, so we use 1/2 x base x height formula.
So what is the total consumer surplus in the contact lens market?
To calculate the total consumer surplus in the contact lens market, we need to first determine the base and height of the triangle representing the consumer surplus.
Given that the market price is $120 and the equilibrium quantity is 120, we can find the height of the triangle as follows:
Height = Equilibrium Quantity - Quantity at Price = 120 - 0 = 120.
To find the base of the triangle, we need to determine the price at which the quantity demanded is zero. Since there is no specific information provided about the demand curve, we cannot directly determine this price. However, assuming a typical downward-sloping demand curve, it would intersect the price axis at a certain point, thus giving us the price at which quantity demanded is zero.
Without the specific demand curve information, we cannot ascertain the base length of the triangle and hence the total consumer surplus.