Question: Consider the example presented in Figure 4.3. Compute the annual loss in consumer surplus for the price increase from $1.25 to $1.75. a. Assume a

Consider the example presented in Figure 4.3. Compute the annual loss in consumer surplus for the price increase from $1.25 to $1.75.

a. Assume a linear demand curve as per equation (4.7)

b. Assume a constant elasticity demand curve as per equation (4.8)

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