Question: QUESTION 5 (10 points) Every Spring, John goes to a local co-op to buy seeds to plant in his field. He has keeping track of

QUESTION 5 (10 points) Every Spring, John goes to a local co-op to buy seeds to plant in his field. He has keeping track of prices of seeds and the number of tons of seeds that he buys each year and estimates his demand curve to be p(q) = 300 = 10q. Last year, he paid $150 per ton of seed but this year the price is $100. Calculate his welfare improvement by measuring the change in John's consumer surplus (CS)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
