Question
Asked Dec 1, 2019
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find the consumers surplus at a price level of $220 for the price-demand equation p=D(x)=500-0.07x

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Expert Answer

Step 1

Given:

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Price level is $220 and the price demand equation is p = D(x)= 500-0.07x... (1)

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Step 2

Calculation:

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The formula to find the consumer surplus is, J(D(x)p.2)

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Step 3
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First, we have to find the demand x value. For that, substitute p 220 in equation (1) 220 500-0.07x 220-500 0.07x -280-0.07x 280 0.07 x = 4000

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