Consider the demand for broadband Internet service, given as follows: QD = 224 4P, where Q is

Question:

Consider the demand for broadband Internet service, given as follows: QD = 224 €“ 4P, where Q is the number of subscribers in a given area (in hundreds) and P is the price in dollars per month. This demand relationship is illustrated in the diagram on the right. Assume that the price of broadband service is $25 per month. Determine the following, paying particular attention to the units in which quantity is denominated:
a. The total number of subscribers at that price
b. The total amount paid by subscribers for broadband service, area B
c. The consumer surplus received by subscribers, area A
d. The total value to consumers of the broadband service they received, areas A and B