In a perfectly competitive market for electricity, consumers’ benefit (in dollars) from consuming electricity is given by B(Q)= -Q2+1000 Q, where Q is the unit of electricity consumed.
Derive the demand for electricity in this market.
Graph the elasticity of demand for electricity, as a function of the electricity price that ranges from $200 to $400. Graph this nicely on EXCEL, no hand drawing please.
Suppose that the electricity price changes from $200 to $300, by how much would the consumer surplus change?