Quiz 14 NAME Consumer's surplus 14.1 In Problem 14.1, Sir Plus has a demand function for mead that is If the price of mead is 75, how equation. much is Sir Plus's net consumer's surplus? (a) 312.50 (b) 25 (c) 625 (d) 156.25 (e) 6,000 function V (r,m)


xxx answer xx xxxx xxxxxxxx is

x. $312.50.

xxxx xxx xx done xx the xxxxxxxxx xxy. x firm xxx charge x xxxxxxx xxxxx in xxxxx demand xx x. xxxx, if xxxxx is $xxx, xxx xxxxxxxy demanded xxxxx be x. xxxx xx calculated xxxx the xxxxxx xxxxxxxx :

D(p) = 100 - x xxx, if xx put x = xxx, the

x(x) = xxx - xxx

D(p) = 0

.xx, xxx xxxxxxx price xx $100.

xxx, xx xxx market xxxxx of $xx, xxxxx xxxx be

x(x) = xxx - xx

D(p) = 25.

xx, xxxxx xxxx be xxxxxx of xx xxxxx. xx, we xxx calculate xxx xxxxxxxx xxxxxxx(xx) as xxxxxxx

CS = x.xx * equilibrium xxxxxxxy * (xxxxxxx xxxxx - Equilibrium xx market xxxxx) xx = 0.50 * 25 * ($xxx - $75)

xx = $xxx.xx. xx, xxx net xxxxxxxx surplus xx $xxx.xx.