Calculate total consumers surplus using individual demand

Assignment Help Macroeconomics

Reference no: EM13181963

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 = 5 ? P. 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 indus- try supply. Using the market demand function, calculate the total consumers surplus.

Reference no: EM13181963

Questions Cloud

State ea for a certain biological reaction : Given that Ea for a certain biological reaction is 48kJ/mol and that the rate constant is 2.5 x 10^-2 s-1 at 15 degrees celsius

Why an automaker exhibits increasing opportunity cost : the elasticities in the above question and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, explain how higher gasoline taxes would affect the equilibrium price and quantity of SUV's. Also..

Compute the mole fraction of oxygen : A mixture of gases conssists of CH4 at a partial pressure of 143 mm Hg, N2 at a partial pressure of 469 mm Hg, and O2 at a partial pressure of 563 mm Hg

State labeling the acid and base : Write the equation for this reaction, labeling the acid, base, conjugate acid, and conjugate base

Calculate total consumers surplus using individual demand : 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 = 5 ? P. Assume that there are 10 consumers of each type. (a) Calculate the market demand.

State the oxidation of sodium metal to sodium oxide : Consider the oxidation of sodium metal to sodium oxide described by the balanced equation

What is the deadweight loss of this policy : Production quota: In many cities, the amount of licenses to operate taxis is limited. For the purposes of this problem, we can think this is a production limit (a maximum production level) of taxi rides set by government. Assume that this limit is lo..

State butanone and hydroxylamine under acid catalyzed : Write out the mechanism for the oxime formed from 2-butanone and hydroxylamine under acid catalyzed conditions.

User Account

All Pages