If the inverse demand function for toasters is:

P=60-Q

What is the consumer surplus when the price is 30?

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2 Jun 2023

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13 Dec 2019

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Related questions

If a firm faces the demand curve P = 60 - Q and the price is $30, the consumer surplus is:

a.	200
b.	300
c.	450
d.	650

3. If the demand curve is P = 60 - Q and the supply curve is Q = P, the market equilibrium output is:

a.	45
b.	30
c.	60
d.	15

apricotlizard15

3. Demand, Supply, consumer surplus, and Market Equilibrium. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum

QD + 92 - 2Px (Demand)

QS = -16 + Px (Supply)

where Q is a quantity measured in pounds of scrap aluminum and P is the price in dollars.

Complete the following table:

What is the condition for market equilibrium?

Calculate the market equilibrium price and equilibrium output?

What is the inverse demand curve P = f (QD)?

Compute the consumer surplus at the equilibrium price.

What is the inverse supply curve P = f (Qs)?

Compute the producer surplus at the equilibrium price.

bronzemosquito2

3. A monopolist has two sets of customers. The inverse demand for Group 1 is described by P1 = 200 - Q1. For Group 2, the inverse demand is P2 = 100- Q2. The monopolist faces ca constant marginal cost of 40. Let Q be the aggregate quantity demanded.

a. (10 points) Show that the monopolist's total demand if the two markets are treated as one is: Q=0; P =200

Q=200-P;100<P =200
Q=300-2P;0<P = 100
b. (10 points) Show that the monopolist's profit-maximizing price is P = 95 if both groups are to be charged the same price. At this price, how much is sold to members of Group 1 and how much

to members of Group 2? What is the consumer surplus of each group? What are the total profits?

4. Now suppose that the monopolist in problem #3 can separate the two groups and charge separate, profit-maximizing prices to each group.

a. (10 points) What will these prices be? What is consumer surplus? What are the total profits?
b. (10 points) If the total surplus is consumer surplus plus profit, how has price discrimination affected total surplus?