Qd = 40 - 3P
P = 13.33 - 0.33Qd
When price is $7.33 quantity sold is 18 units
Consumer Surplus at this price = 0.5*(13.33-7.33)*(18-0)
CS1 = 0.5*6*18 = $ 54
When price is $2.33 quantity is
Q = 40 - 3*2.33 = 40 - 7 = 33
CS2=0.5*(33-18)*(7.33-2.33) = $ 37.5
Total consumer surplus = 54 + 37.5 = $ 91.50
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Question 11 Suppose that a price-searcher firm had consumers who were all identical to each other....
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