The demand function for a particular vacation package is p(x) = 4,000 − 43sqrt(x) Find the consumer surplus (in dollars) when the sales level for the packages is 400. Illustrate by drawing the demand curve and identifying the consumer surplus as an area. (Round your answer to the nearest cent.)

The demand function for a particular vacation package is p(x) = 4,000 − 43sqrt(x) Find the consumer surplus (in dollars) when the sales level for the packages is 400. Illustrate by drawing the demand curve and identifying the consumer surplus as an area. (Round your answer to the nearest cent.)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 1P

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Q 8.4 #2

The demand function for a particular vacation package is

p(x) = 4,000 − 43sqrt(x)

Find the consumer surplus (in dollars) when the sales level for the packages is 400. Illustrate by drawing the demand curve and identifying the consumer surplus as an area. (Round your answer to the nearest cent.)

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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