The demand for ceiling fans can be modeled below as

D(p) = 25.62(0.996 ^p) thousand ceiling fans

where p is the price (in dollars) of a ceiling fan.

According to the model, is there a price above which consumers will no longer purchase fans? Explain why or why not.

The model is exponential and does not cross the horizontal axis. Therefore there is no price above which consumers will not purchase a ceiling fan.

(a) Calculate the amount that consumers are willing and able to spend to purchase 19 thousand ceiling fans. (Round your answer to three decimal places.)

(b) How many fans will consumers purchase when the market price is $100? (Round your answer to three decimal places.)

(c) Find the consumers' surplus when the market price is $100. (Round your answer to three decimal places.)

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a To calculate the amount that consumers are willing and able to spend to purchase 19 thousand ceili... View the full answer