Question
(Look At image to solve these)
a. What is the consumer surplus in the equilibrium?
 
b. Suppose there is an increase in the cost of producing flash drives such that the quantity
demanded decreases by 1,000 units for each price.
What is the consumer surplus at the new equilibrium?
Consider the following market for flash drives.
Price Quantity supplied Quantity demanded
$65
3,000
0
$60
2,750
250
$55
2,500
500
$50
750
2,250
$45
2,000
1,000
$40
1,750
1,250
$35
1,500
1,500
$30
1,250
1,750
$25
2,000
1,000
$20
750
2,250
$15
2,500
500
$10
250
2,750
$5
3,000
0
$0
3,250

Image Transcription

Consider the following market for flash drives. Price Quantity supplied Quantity demanded $65 3,000 0 $60 2,750 250 $55 2,500 500 $50 750 2,250 $45 2,000 1,000 $40 1,750 1,250 $35 1,500 1,500 $30 1,250 1,750 $25 2,000 1,000 $20 750 2,250 $15 2,500 500 $10 250 2,750 $5 3,000 0 $0 3,250

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Consumer demand theory

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