Calculating Consumer Surplus
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The demand curve for product X is given by Qdx = 460 - 4Px
a) How much consumer surplus do consumers receive when Px = $35?
b) How much consumer surplus do consumers receive when Px = $25?
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Solution describes the steps for calculating consumer surplus.
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Solution:
a) How much consumer surplus do consumers receive when Px = $35?
First find the point where Qdx=0
Qdx = 460 - 4Px
Put Qdx=0
460-4Px=0
4Px=460
Px=115
Qdx at P=$35 will be given by ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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