Calculate the total consumers surplus

Reference no: EM13181929

Type your question her

Assume there are two types of consumers: type A consumers have a demand

Q =10

P for widgets, and consumers of type B have a demand Q = 5P. Assume that there are 10 consumers of each type.

(a) Calculate the market demand.

(b) Assume that the market price for the good is $4 due to perfectly elastic industry supply. Using the market demand function, calculate the total consumers surplus.

Reference no: EM13181929

Questions Cloud

State how are the hydrogens attached to the same carbon : In relation to the oxygen atom forming the linkage between glucose molecules, how are the hydrogens attached to the same carbon

Imaging agents in nuclear medicine : Predict the likely mode of decay for the following isotopes used as imaging agents in nuclear medicine (choose all likely modes od decay- can have multiple answers for each and may be used multiple times):

Find the new equilibrium real interest rate : Find the new equilibrium real interest rate and the corresponding levels of consumption, investment, national saving, private saving, and government saving. Find the equilibrium real interest rate r . Find the equilibrium levels of consumption, in..

State what is the hydronium ion concentration of a solution : What is the hydronium ion concentration of a solution with an hydroxyl ion concentration of 1.8 x 10^-10 M? D) What is the hydronium ion concentration of a solution with an hydronium ion concentration of 5.13 x 10 ^-9 M?

Calculate the total consumers surplus : Calculate the market demand. Assume that the market price for the good is $4 due to perfectly elastic industry supply. Using the market demand function, calculate the total consumers surplus. Calculate the total consumers surplus using individual ..

State the half life for the beta decay of strontium : How many atoms of 90Sr are in a 220.0 mL glass of milk with 1.25 Bq/L of 90Sr radioactivity? (The half life for the beta decay of strontium

State what is the temprature at the condenser outlet : degress Celcius and 1 atm enters a coller in which 55% of the feed is condensed at a constant pressure. What is the temprature at the condenser outlet and explain?

Is demand elastic-inelastic or unit elastic : Find the equilibrium price and quantity. Find the elasticity of demand and the elasticity of supply, evaluated at the equilibrium price and quantity. Is demand elastic, inelastic, or unit elastic? Is supply elastic, inelastic, or unit elastic?

How could we return to long run equilibrium : If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event..

User Account

All Pages