Question 40 a. When the price of pizza is $20, total expenditure
and consumer surplus are, respectively b. When the price of pizza is $30, total expenditure and consumer surplus are, respectively
Question 41 The aggregate demand for good Xis. If the price rises from ππ = $4 to ππ = $5, what is the
change in consumer surplus Question 42 The
aggregate demand for good Xis, and the market price is ππ = $8. What is the maximum amount that consumers are willing to pay for the quantity
demanded at this price Question 43 The demand curve for the daily edition of the Lubbock Avalanche Journal is π·π· = 85,000 β 30,000ππ. The current price of the newspaper is $0.50. Derive the Consumer Surplus for the newspaper.
Question 44 The market supply curve of rubber erasers is given by ππ
ππ
= 35,000 + 2,000ππ. The demand for rubber erasers can be segmented into two components. The first component is the demand for rubber erasers by art students. This demand is given by ππ
π΄π΄
= 17,000 β 250ππ The second component is the demand for rubber erasers by all others. This demand is given by ππ
ππ
= 25,000 β
2,000ππ. Derive the total market demand curve for rubber erasers. Find the equilibrium market price and quantity. Also, determine the consumer surplus for each component of demand.
Question 45 What is meant by consumer
surplus How is it calculated Question 46 Consider the following supply and demand diagram Identify which
of the three areas labeled AB, and C represents consumer surplus in this market.
