Tutorial Exercise Consumers Surplus The demand function for a certain brand of CD is given...
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Algebra
Tutorial Exercise Consumers Surplus The demand function for a certain brand of CD is given by p 0 01x 0 2x 32 where p is the wholesale unit price in dollars and x is the quantity demanded each week measured in units of a thousand Determine the consumers surplus if the market price is set at 8 disc Step 1 We are given that the demand function is given by p 0 01x 0 2x 32 where p is the unit price in dollars and x is the quantity demanded each week Further we are told that the unit market price is set at 8 Therefore p 8 We use this information to find the corresponding demand equation and solve it for x p 0 01x 0 2x 32 8 0 01x 0 2x 32 0 0 01x 0 2x 100 0 100 0 01x 0 2x 0 x 20x 0 x 40 x 40 or x
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