Answer
Consumer surplus=0.5*(maximum willingness to pay -price)*Q
P=25
25=70-Q
Q=45
CS=0.5*(70-25)*45
=1012.50
The CS is $1012.50
If the inverse demand function for toasters is p=70-Q, what is the consumer surplus if price...
If the inverse demand function for toasters is p 100-Q, what is the consumer surplus if price is $25? The consumer surplus is $11 (round your answer to two decimal places)
if the inverse demand function for toasters is p= 120-2q , then what is the consumer surplus if price is $40 ?
1. Consumer Surplus a. The inverse demand curve facing a firm is p = a – bQ. Ifp = - determine the consumer surplus. This will be a general equation. b. This general equation may seem abstract. Recall that in general, consumer surplus is the area under the demand curve and above the price. Let a = 100, p = - = 50, and Q = 100. Solve for consumer surplus using the basic 12(Base*Height) formula. Then solve using the...
Consider the inverse demand curve: p 80 2Q. Assume the market price is $10.00. Calculate consumer surplus at the equilibrium market price and quantity. Consumer surplus (CS) is (Enter your response rounded to two decimal places.)
*2.2 If a monopoly faces an inverse demand function of p = 90 − Q , p=90−Q, has a constant marginal and average cost of 30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, total surplus, and deadweight loss? How would these results change if the firm were a single-price monopoly?
Find the price elasticity of demand at P = 4 for the demand function below. P=70- The price elasticity of demand at P = 4 is (Do not round until the final answer. Then round to two decimal places as needed.)
The market supply function is P = 10 + Q and the market demand function is P = 70 - 2Q. What is the change in consumer surplus associated with a minimum floor price of $40? A) -$25 B) -$150 C) -$175 D) -$200 Please provide a explanation! thank you!
Inverse demand for a good is given by the function p = 55 – 3q and inverse supply is given by the function p = 10 + 2q. The resulting per-unit price is $28, and the quantity supplied and demanded is 9. The government now sets a price ceiling of $26, and for simplicity. assume that any goods produced are sold to consumers with the highest willingness to pay. What is the resulting consumer surplus? * 121.5 (Round to the...
In the competitive market for sunglasses, the inverse demand is p = 37 -- and the consumer surplus in equilibrium is 334. What must be the price? (Round off answers to 2 decimal places)
Suppose that a monopoly faces inverse market demand function as P = 70−2Q, and its marginal cost function is MC = 40 – Q. Please answer the following two questions: a. What should be the monopoly’s profit-maximizing output? b. What is the monopoly’s price?