Question: I've done the initial question, can you please explain how you calculate the rest? thanks! (done) Initial Question There are 6 potential consumers of computer

I've done the initial question, can you please explain how you calculate the rest? thanks!

(done) Initial Question There are 6 potential consumers of computer games. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing pay $25, consumer 5 is willing to pay $20, and consumer 6 is willing to pay $15.

a. Suppose the market price is $29. What is the total consumer surplus?

b. The market price decreases to $19. What is the total consumer surplus now?

c. When the price fell from $29 to $19, how much did each consumer's individual consumer surplus change?

  1. When demand is estimated to be p = 50 - 0.5x, calculate the loss in consumer surplus when a tax drives price from $1 to $5.
  2. Suppose we're given the demand function p = -50q + 2000 and we had the supply function p = 10q + 500.

a. Calculate the price and quantity at equilibrium point.

b. Calculate the consumer surplus, producer surplus, and total surplus.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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

Students Have Also Explored These Related Economics Questions!