1. The table contains information on the price per month and the monthly demand and supply of...
Question:
1. The table contains information on the price per month and the monthly demand and supply of Spotify subscriptions.
Price | Quantity demanded (thousands) | Quantity supplied (thousands) |
$3 | 540 | 390 |
$4 | 480 | 410 |
$5 | 440 | 440 |
$6 | 390 | 510 |
What is the equilibrium price and quantity of Spotify subscriptions?
2. On Thursday nights, a local restaurant has a pasta special. Chen likes the restaurant's pasta, and his willingness to pay for each serving is shown in the accompanying table.
Quantity of pasta (servings) | Willingness to pay for pasta (per additional serving) |
1 | $10 |
2 | 8 |
3 | 6 |
4 | 4 |
5 | 2 |
6 | 0 |
a. [6pt] If the price of a serving of pasta is $2, how many servings will Chen buy? How much consumer surplus does he receive?
b.[4pt] The following week, Chen is back at the restaurant again, but now the price of a serving of pasta is $6. By how much does his consumer surplus decrease compared to the previous week?
Linear Algebra And Its Applications
ISBN: 9781292351216
6th Global Edition
Authors: David Lay, Steven Lay, Judi McDonald