Suppose an individual demand curve is given by p 100 - 5q


Suppose an individual demand curve is given by P = 100 - 5Q, where P is the price of smoothies and Q is the quantity she consumes. Assuming her income per week is $1,000 and the current price of smoothies is $5 each, by how much will her consumer surplus decline if the price of smoothies increasedto $10 each? First diagram your answer by plotting the above demand curve and then determine the dollar value of her loss in surplus.

Solution Preview :

Prepared by a verified Expert
Business Management: Suppose an individual demand curve is given by p 100 - 5q
Reference No:- TGS02191800

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)