The inverse supply for a good is given by the function p = 4 + q. While the demand function isn't immediately known (though can bederived), the picture below gives a graphical representation of demand.P3230282624222018161412108642002345 67 8 9 10 11 12 13 14 15 16quantityIf the per-unit price is $11, and 7 units are bought and sold, what is the total surplus (consumer surplus + producer surplus)? Give youranswer to one decimal.

A consumer surplus happens when the price that consumers pay for a product or service is less than…

Answered: If the per-unit price is $11, and 7…

If the per-unit price is $11, and 7 units are bought and sold, what is the total surplus (consumer surplus + producer surplus)? Give your answer to one decimal.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

The inverse supply for a good is given by the function p = 4 + q. While the demand function isn't immediately known (though can be
derived), the picture below gives a graphical representation of demand.
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quantity
If the per-unit price is $11, and 7 units are bought and sold, what is the total surplus (consumer surplus + producer surplus)? Give your
answer to one decimal.

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Step 1: Define consumer surplus and producer surplus:

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Step 2: Determine consumer surplus:

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Step 3: Determine producer surplus:

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Step 4: Determine total surplus:

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