Final answer:
The quantity demanded for TV remotes at the price of $10 is 80 units, and the consumer surplus at this price point is $2000, calculated as the area of a triangle representing the difference between the willingness to pay and the market price.
Step-by-step explanation:
To calculate the quantity demanded for TV remotes when the market price is $10, we use the demand equation qd = 100 – 2p. Plugging in the given price:
qd = 100 – 2(10) = 80
Therefore, the quantity demanded equals 80 TV remotes at a price of $10.
To find the consumer surplus, we need to identify the willingness to pay at a price of zero, which represents the maximum value consumers place on the remotes. We set p to 0 in the demand equation:
qd = 100 – 2(0) = 100
This means the maximum price consumers are willing to pay for the first remote is $50 (since 100 = 100 – 2p translates to p = 50 when qd = 1). Thus, consumer surplus can be visualized as the area of a triangle with a height of 50 (from price $0 to $50) and a base of 80 (the quantity demanded at price $10). The value of the consumer surplus is calculated as:
Consumer Surplus = (Base * Height) / 2 = (80 * 50) / 2 = $2000.
So, the value of consumer surplus is $2000 when the price of TV remotes is $10.