Answered: Find the consumers' surplus at a price…

Find the consumers' surplus at a price level of $1 for the price-demand equation p=D(x)=20−0.1x where p is the price and x is the demand. Do not include a dollar sign or any commas in your answer.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section20.2: Consumer Equilibrium And Demand

Problem 1ST

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Question

Find the consumers' surplus at a price level of $1 for the price-demand equation

p=D(x)=20−0.1x

where p is the price and x is the demand. Do not include a dollar sign or any commas in your answer.

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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