Calculate the consumer surplus for the demand function P = 50 − 4Q when the market price is P = 10.

asked Jun 9, 2016 87.7k views

4 votes

Calculate the consumer surplus for the demand function

P = 50 − 4Q
when the market price is P = 10.

8.3k points

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1 vote

P = 50 - 4Q
10 = 50 - 4Q
rearranging we get:
4Q = 50 - 10
4Q = 40
Q = 10

Rompetroll answered Jun 11, 2016

7.7k points

1 vote

P = 50 - 4Q

P = 10

Plug in 10 for 'P':

10 = 50 - 4Q

Subtract 50 to both sides:

-40 = -4Q

Divide -4 to both sides:

Q = 10

Aarthi answered Jun 16, 2016