Answered: 8. When a package of 4 units is sold…

8. When a package of 4 units is sold for a total price of 20 to a buyer of type 1 , the consumer surplus to that buyer from buying this package is________________. a ) 20 b ) 36 c ) 24 d ) 42 e ) 12

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

8. When a package of 4 units is sold for a total price of 20 to a buyer of type 1 , the consumer surplus to that buyer from buying this package is________________.

a ) 20

b ) 36

c ) 24

d ) 42

e ) 12

9. When at most one package of 4 units is available for a total price of 20 , the maximum price that a buyer of type 1 would pay for a package of 12 units is_____________.

a ) 84

b ) 96

c ) 120

d ) 114

e ) 56

Use the following information to answers questions 6 - 9. Suppose each buyer of type 1 has a
demand curve given by Q1 = 16 - P, and each buyer of type 2 has demand curve given by
Q2 = 12 - 2P. Assume that MC = AC = 4.

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