Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 5CACQ
To determine
(a)
To find:
The inverse demand curve.
To determine
(b)
To determine
(c)
To find:
The consumer Surplus when price is $30.
To determine
(d)
To explain:
The effect on consumer surplus when price of the good falls.
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Students have asked these similar questions
A consumer has inverse demand of
p=15−1q
for a good and the market price is
$4.00.
Calculate consumer surplus and the total value of the good for the corresponding quantity consumed.
Consumer surplus is $enter your response here.
(Enter your response rounded to two decimal places.)
The consumer's expenditure for the good is
$enter your response here. (Enter your response rounded to two decimal places.)
On a clean sheet of paper, draw the market described by the following
supply and demand functions: QD (P) = 10 -
Q$ (P) = 4P – 12.
2P
and
a) Draw a graph of the market and solve for the market equilibrium. Solve
for the producer surplus in the equilibrium, and indicate the corresponding
area in the graph.
b) Would producers benefit if a price floor of $10/unit is imposed? Calculate
the change in their surplus, as well as deadweight loss (if there is any), and
indicate all these in a new graph.
Consider the demand function D(p) = 99.0 - 4.0p. When the price changes from p1 = 4.0 to p2 = 8.0, what is the change in the consumer's surplus? Give your answer to one decimal.
1300
Chapter 2 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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