Show your solutions/ calculations for each question (not just the final answer).
Annas demand for good X is given by the following equation:
q = 7 p + 0.0005I
where q is the quantity demanded at price p when Annas income is I. Annas income is
currently $9
Question A - fill in the last two columns
-20
11/13
15
24/21
130
2/ 1
70
11/4
100
21/11
Question B- benefits divided by costs
a-110/130=.846
b-120/105=1.142
c-260/130=2
d-110/40=2.75
e-210/110=1.909
* D which is 2.75 gives us the maximum /optimal benefit.