Question: Suppose the demand function for a product is given by the function: d(q)= 0.02q + 70 Find the Consumer's Surplus corresponding to q= 704 units.
Suppose the demand function for a product is given by the function: d(q)= 0.02q + 70 Find the Consumer's Surplus corresponding to q= 704 units. -Do no rounding of results until the very end of your calculations. At that point, round to the nearest tenth, if necessary. -Even though you are not given a supply function, treat the q=704 given as if it is the q* at the equilibrium point, then use d to find p*, and then proceed as usual. -Visually, it may help to sketch the demand curve (which crosses the horizontal at q=1846) , the horizontal line p* and shade the area corresponding to consumer's surplus from 0 to q=704.
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