5. Refer to the diagram below: 3.50 300 250+ 200 150+ 100+ 50+ 4 Demand 50 (a) If the price of the good is 250, what is the consumer surplus? (b) The value of the good to consumers minus the cost of the good to consumers amounts to 325. What is the price of the good?

5. Refer to the diagram below: 3.50 300 250+ 200 150+ 100+ 50+ 4 Demand 50 (a) If the price of the good is 250, what is the consumer surplus? (b) The value of the good to consumers minus the cost of the good to consumers amounts to 325. What is the price of the good?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Refer to the diagram below:
350
300
250+
200+
150+
100
50
1
3
4
Demand
50
(a) If the price of the good is 250, what is the consumer surplus?
(b) The value of the good to consumers minus the cost of the good to consumers
amounts to 325. What is the price of the good?

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