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Figure 1: A change in price PRICE 15 DEMAND 15 20 QUANTITY In the above diagram, the price is originally p* = 10. It then inc

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Answer #1

Ans) the correct option is a) -$87.50

Change in consumer surplus = (15-10)* 15 + 0.5*(15-10)* (20-15)

= 75 + 12.5 = 87.5 ( decrease)

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