What is maggie consumer surplus at the quantity

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Maggie's individual demand for boxes of Keurig K-Cups is given byP = 20 - 0.1Q (or Q = 200 - 10P), where P is in dollars and Q is quantity consumed per year. Her local price club charges an annual fixed fee of $30, along with the following per unit price schedule:

  • P = $16 for the first 100 boxes
  • P = $14 for all remaining boxes

Answer the following questions. Please clearly indicate with the appropriate letter, which question you are answering in the answer box.

  • What quantity will Maggie consume?
  • What is Maggie's total expenditure?
  • What is Maggie's consumer surplus at the quantity given in part (a)?

Reference no: EM132647759

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