In a competitive market, the market-clearing price is $5.30 and the market-clearing quantity is 20. At P = $5.3, consumer surplus of this market is 47. Assume the market %3D demand function is linear. The vertical intercept of the demand curve is equal to A. (Assume P is put on the vertical axis and Q is put on the horizontal axis.)

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.13P
icon
Related questions
Question
In a competitive market, the market-clearing price is $5.30 and the market-clearing
quantity is 20. At P = $5.3, consumer surplus of this market is 47. Assume the market
%3D
demand function is linear. The vertical intercept of the demand curve is equal to
A . (Assume P is put on the vertical axis and Q is put on the
horizontal axis.)
Transcribed Image Text:In a competitive market, the market-clearing price is $5.30 and the market-clearing quantity is 20. At P = $5.3, consumer surplus of this market is 47. Assume the market %3D demand function is linear. The vertical intercept of the demand curve is equal to A . (Assume P is put on the vertical axis and Q is put on the horizontal axis.)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Input Substitution
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage