?=?−? / ?
Derive a formula for consumer surplus as a function of Q (i.e. assume the decision maker is setting Q and letting the demand function determine P). Include a well labeled graph.
?=?−? / ? Derive a formula for consumer surplus as a function of Q (i.e. assume...
(Always use simple math and graphs in your responses if and where appropriate.) 1. Starting from the following demand function: ?=?−?? A) Derive a formula for consumer surplus as a function of Q (i.e. assume the decision maker is setting Q and letting the demand function determine P). Include a well-labeled graph. B) Consider a capacity constraint Q' which limits the availability of Q for any given price. Derive a formula for consumer surplus as a function of ?' and...
?=?−? / ? Consider a capacity constraint ?', which limits the availability of Q for any given price. Derive a formula for consumer surplus as a function of ?' and P assuming excess demand exists for the given level of P. Include a well labeled graph.
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=70-Q, what is the consumer surplus if price is $25? The consumer surplus is (round your answer to two decimal places)
Q=100,000-10,000P solve for the consumer surplus at the equilibrium price and quantity Demand: Let the Market Demand curve for soybeans be given by the following equation: Q=100,000 -10,000P where the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q=-5,000+ 5,000P 3) Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price....
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...
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equilibrium quantity (Q*). (4 points) b. Solve for consumer surplus, producer surplus and total surplus. (4 points) 2. Welfare Effects of a Per Unit Tax Given the same demand and supply equations as in question #1, suppose the government imposes a per unit tax of $15: 22 a. Solve for the new equilibrium quantity...
Find the consumer surplus for the given demand function and sales level. p=1550-0.29, 2500 Find the consumer surplus for the given demand function and sales level. p=1550-0.29, 2500
Demand Q2 Q Quantity According to the graph shown, at the price of P2, consumer surplus is OB O A+B+C+D+E Oc OA
Consumer's Surplus A consumer has the utility function U(, y)v) where is the good in concern ail y is the money that can be spent on all other goods (so the price of y is normalized to be 1). The income of - this consumer is 100. Bi Pr X10 (In(x)y) (10%) Derive the demand function of z for this consumer. (10%) Calculate the price elasticity of the demand function in (b) Is it true that the absolute value of...