Suppose the same linear (inverse) demand function is represented by the equation, P = 100 - .25Q. Now, instead assume the market is unobservable, i.e., there is no market to provide a non-zero observable price. Hence, you can assume the "market" price is zero.

Suppose the same linear (inverse) demand function is represented by the equation, P = 100 - .25Q. Now, instead assume the market is unobservable, i.e., there is no market to provide a non-zero observable price. Hence, you can assume the "market" price is zero.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Only typed Answer

Suppose the same linear (inverse) demand function is represented
by the equation, P = 100.25Q.
Now, instead assume the market is unobservable, i.e., there is no
market to provide a non-zero observable price.
Hence, you can assume the "market" price is zero.
What is consumer's surplus in this case?
O $15,000
Ⓒ $7,500
O $40,000
$20,000

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