Answered: If the supply equation is P = (Q + 4)2…

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If the supply equation is P = (Q + 4)2 . find the consumer’s surplus when the consumer purchases 40 units at price $6.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 1QP

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Question

If the supply equation is P = (Q + 4)². find the consumer’s surplus when the consumer purchases 40 units at price $6.

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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