Suppose Jin's demand curve for text messages is T = 150 – 500Pt , where T stands for the number of text messages and Pt represents the price of text messages. The current price is $0.10 per message. If he begins to use Google Hangouts, his demand curve for text message will shift to T = 100 – 500Pt . Compute the expected change in Jin’s consumer surplus assuming the text price remains the same.

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SOLUTION DEMAND T 150 500 P t NEW EXPECT... View the full answer