Homework 2.pdf - Econ 1014 Homework#2 Due by 11:59pm on Monday September 9 Note that this homework file is only for you to record your answer To

Homework 2.pdf - Econ 1014 Homework#2 Due by 11:59pm on...

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Econ 1014 Homework #2 Due by 11:59pm on Monday, September 9. Note that this homework file is only for you to record your answer. To complete the homework for grading, you must submit your answers through the online homework assignment. 1. Figure: Earned Consumer Surplus a. Refer to the figure. The market price of the product is $20 per unit. What quantity of this good are consumers willing and able to purchase? (1 pt) b. Calculate the dollar amount of consumer surplus being earned in this market at the $20 price. (1 pt) c. If the price of this product falls to $15 per unit, consumers will purchase this product for uses in which there are (fewer/more) substitutes for it. (1 pt)
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