Question: Suppose that the (inverse) demand for a good is given by the equation p =100 - 4q. a. Compute the consumer surplus corresponding to a

Suppose that the (inverse) demand for a good is given by the equation p =100 - 4q.
a. Compute the consumer surplus corresponding to a price of 80.
b. Compute the change in consumer surplus corresponding to a change in price from 80 to 70.

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a At a price of 80 the quantity demanded is 5 Hence the CS triangle has b... View full answer

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