Economics

posted by .

Demand is given by Q=9-P. If price is $4, what is the consumer surplus from the third unit of the good?


Consumer surplus is the amount a person would pay less the amount he/she actually pays. So, using algebra, rewrite the demand equation as P=9-Q. The person buying the 3rd unit would be willing to pay $6. So, the consumer surplus is .......

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    An early freeze in CA sours the lemon crop, What happens to consumer surplus in the market of lemons?
  2. Econ MC

    Suppose that the equilibrium price in the market for widgets is $5. If a law reduced the maximum legal price for widgets to $4, a. consumer surplus would necessarily increase even if the lower price resulted in a shortage of widgets. …
  3. Economics

    As price falls along the elastic portion of a linear demand curve, _______ decrease while _______ increase. Answers. A. only price; quantity demanded , consumer surplus, and consumer expenditures B. consumer surplus and price; quantity …
  4. Economics

    I have the following question in my assignment: The cost of producing stero systems has fallen over the past several decades. A:Use the supply-and-demand diagram to show the effects of fallaing production costs on the price and quantity …
  5. Microeconomics

    Answer the following questions based on the graph that represents J.R.'s demand for ribs per week of ribs at Judy's rib shack. a. At the equilibrium price, how many ribs would J.R. be willing to purchase?
  6. economics math

    Consider the problem of a rational consumer with an experienced utility function given by 10ln(x)+m and a wealth level W=100. Suppose that the market price for good x is p=$2 per unit. You are asked to analyze the impact on the consumer's …
  7. Econ

    F. Flinstone has quasilinear preferences and his inverse demand function for Brontosaurus Burgers is P(b)= 30-2b. Mr. Flintstone is currently consuming 10 burgers at a price of 10 dollars. (a) How much money would he be willing to …
  8. economics

    Given a demand fxn of 20-2P and a supply fxn of -4+P for a perf. competitive market: 1. Calculate the equilibrium price and qty. (I got e. price = 4 and e. qty = 8 is that right?
  9. Economics

    Given a demand fxn of 20-2P and a supply fxn of -4+P for a perf. competitive market: 1. Calculate the equilibrium price and qty. (I got e. price = 4 and e. qty = 8 is that right?
  10. micro economics

    Assume short-run demand and supply curves for dry cleaning have the usual slopes, and each unit produced requires some amount of labour and exactly 1 unit of dry-cleaning fluid. What will be the short-run result of a decrease in the …

More Similar Questions