HW chap 6-7

00500 cs62500

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Unformatted text preview: a triangle with a base equal to 325.00 and a height equal to the difference in the 10.5 vertical intercept and the $4.00 price: CS = 0.5(325.00)(10.5 – 4.00) CS = 0.5(325.00)(6.50) CS = 1,056.25. When the price is $5.50, the quantity demanded equals: S = 525 – 50(5.50) S = 525 – 275.00 S = 250.00. Consumer surplus (CS) initially equals the area of a triangle with a base equal to 250.00 and a height equal to the difference in the 10.5 vertical intercept and the $5.50 price: CS = 0.5(250.00)(10.5 – 5.50) CS = 0.5(250.00)(5.00) CS = 625.00. The change in...
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This note was uploaded on 01/22/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.

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