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?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 5CQQ
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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?
Transcribed Image Text: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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