Find total mount of money consumers are willing to spend


Discussion:

Q1.The demand function is: D(q) = 300/[4q+3] per unit. Find the total mount of money consumers are willing to spend to get 10 units of the commodity.

Q2. p= S(q) is the price (dollars per unit) at which q units of a particular commodity will be supplied to the market by producers, and q0 is a specified level of production. Find the price p0 = S(q0) at which q0 units will be supplied and compute the corresponding producer's surplus PS.

S(q) = 17 + 11e^(0.01q) ; q0 = 7 units

 

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