6. If the demand equation isQ =100 – 10P4find the consumer's surplus when the consumerpurchases 8 units. What is the revenue of the seller?7. If the marginal revenue isMR =26 – Q find the highest level of production (Q) of the firmwhen its total revenue is 70 dollar.

Answered: 6. If the demand equation is 2=100-10P…

6. If the demand equation is 2=100-10P find the consumer's surplus when the consumer purchases 8 units. What is the revenue of the seller?

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

6. If the demand equation is
Q =100 – 10P4
find the consumer's surplus when the consumer
purchases 8 units. What is the revenue of the seller?
7. If the marginal revenue is
MR =26 – Q find the highest level of production (Q) of the firm
when its total revenue is 70 dollar.

Expert Solution

Step 1

Given Demand Equation :

Q = 100 - 10P

The consumer purchases 8 units.

Calculate Price -

Q = 100 - 10P
8 = 100 - 10P
8 - 100 = - 10P
10P = 92
P = 92/10

P = 9.2

So, The price at which 8 units would be purchased is 9.2 per unit.

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