Question: If the inverse demand function for radios is p = a - bq, what is the consumer surplus if the price is a/2?

If the inverse demand function for radios is p = a - bq, what is the consumer surplus if the price is a/2?

Step by Step Solution

★★★★★

3.40 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Consumer surplus is the monetary difference between what a consumer is willing to pay for the quanti... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1377-B-E-D-A-S(3802).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

If the inverse demand function for toasters is p = 60 - q, what is the consumer surplus if the price is 30?

Q:

If the inverse demand function for books is p = 60 - q and the supply function is q = p, what is the initial equilibrium? What is the welfare effect of a specific tax of ( = $2 per unit on the...

Q:

Lolita, an intelligent and charming Holstein cow, consumes only two goods, cow feed (made of ground corn and oats) and hay. Her preferences are represented by the utility function U(x, y) = xx2 /...

Q:

1.3 If the inverse demand function for radios is p = a - bq, what is the consumer surplus if the price is a>2? M

Q:

1.2 If the inverse demand function for radios is p = a - bq, what is the consumer surplus if the price is a/2? M

Q:

2.2 If the inverse demand function for radios is p = a - bQ, what is the consumer surplus if price is a/2? A

Q:

If the inverse demand function for radios is p = a - bq, what is the consumer surplus if the price is a/2?

Q:

1.Suppose a bank will pay you a 10% interest rate on your deposits for 1 period. In this case you must sacrifice $10 of current consumption to finance $9 of future consumption. $10 of future...

Q:

need these fast 1. Which of the following is an example of a positive statement? O A. If this good is bad for you, you should not consume it. O B. If you consume this good, you will get sick. O C....

Q:

need this quick. Thanks 1. Which of the following is an example of a positive statement? O A. If this good is bad for you, you should not consume it. O B. If you consume this good, you will get sick....

Q:

3. examine the distance matrix above and then answer 3a-3c: Distance 1 2 7 10 1 2 3 4 5 67 6 8 9 10 10 20 30 40 10 20 30 40 50 88888888 10 20 30 20 10 20 30 40 3 20 10 10 20 30 20 10 20 30 4 ...

Q:

Compute the MIRR statistic for Project I and tell whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 12percent. Project I TimeI Cash...

Q:

14.64 How do the coefficients of partial determination differ from the coefficient of multiple determination?

Q:

You are given this account for a bank: The required reserve ratio is 10 percent. a. How much is the bank required to hold as reserves given its deposits of $3,500? b. How much are its excess...

Q:

1. You are willing to pay $2,000 to have your house painted, and Pablos marginal cost of painting a house is $1,400. If you agree to split the difference, the price is ______, your consumer surplus...

Q:

1. You are willing to pay $2,000 to have your house painted, and Pablos marginal cost of painting a house is $1,400. If you agree to split the difference, the price is ______, your consumer surplus...

Q:

1. You are willing to pay $2,000 to have your house painted, and Pablos marginal cost of painting a house is $1,400. If you agree to split the difference, the price is ______, your consumer surplus...

Q:

What does the affidavit released from the PMO say about Netaji?

Q:

using above information answer following question: 1.What price could Jennifer afford to pay if she only needs is a 9% (unleveraged) yield? 2.Under what type of circumstances might Jennifer pay that...

Q:

Terri Simmons is single and had $174,500 in taxable income. Use the rates from Table 2.3. a. Calculate her income taxes. (Do not round intermediate calculations and round your answer to the nearest...