You are considering buying a monthly metro pass for the subway at $150 or paying $4 per ride. Your monthly demand curve is P = 60 - 2Q where Q is the number of rides per month. Given this information, your consumer surplus will be $750 buying each ride and $900 with the monthly pass. $600 buying each ride and $700 with the monthly pass. $784 buying each ride and $900 with the monthly pass. $784 buying each ride and $750 with the monthly pass. O o o o

You are considering buying a monthly metro pass for the subway at $150 or paying $4 per ride. Your monthly demand curve is P = 60 - 2Q where Q is the number of rides per month. Given this information, your consumer surplus will be $750 buying each ride and $900 with the monthly pass. $600 buying each ride and $700 with the monthly pass. $784 buying each ride and $900 with the monthly pass. $784 buying each ride and $750 with the monthly pass. O o o o

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 6MC

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