The Demand function for a product is pd(q) = 80(0:1q + 0:2)2, where q is in millions of tons and pd(q) is in dollars per ton. Market equilibrium occurs at the demand for 18 million tons. Compute consumer's surplus. (0.1g+ 0.2)2 Where q is in millions of tons and pa(g) is indollars per ton. Market equilibrium occurs at a demand for 18 million tons. Compute consumer's surplus.The Demand function for a product is Pa(g)A. $3240 thousandB. $5865 thousandC. $2238 thousandD. $3855thousand

Given:Demand function, P(q) = 800.1q+0.22Equilibrium quantity, q = 18

The Demand function for a product is pd(q) = 80(0:1q + 0:2)2, where q is in millions of tons and pd(q) is in dollars per ton. Market equilibrium occurs at the demand for 18 million tons. Compute consumer's surplus.

The Demand function for a product is pd(q) = 80(0:1q + 0:2)2, where q is in millions of tons and pd(q) is in dollars per ton. Market equilibrium occurs at the demand for 18 million tons. Compute consumer's surplus.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 9MC

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Question

(0.1g+ 0.2)2 Where q is in millions of tons and pa(g) is in
dollars per ton. Market equilibrium occurs at a demand for 18 million tons. Compute consumer's surplus.
The Demand function for a product is Pa(g)
A. $3240 thousand
B. $5865 thousand
C. $2238 thousand
D. $3855
thousand

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