Consumer surplus at the 2001 price and quantity

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Consumer surplus at the 2001 price and quantity

Using the demand curve you estimated in task 1, calculate consumer surplus when the price of cotton is $0.42 per pound and the quantity purchased is 73 million bales per year. Hint #1: To guide your calculations, draw a careful picture of the demand curve! Hint #2: Your Q is in millions of bales per year and your price measure is in $ per pound. When you compute the consumer surplus "triangle," you will want to convert "millions of bales per year" into "millions of pounds per year" by multiplying your Q by the conversion factor, 480 pounds per bale.

Reference no: EM133131123

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