Assume that the market demand for cheese is given by the function Qd=252-4P , and the supply is perfectly inelastic such that Qs=172, as farmers cannot change the quantity supplied of cheese in the short-run. Calculate the following: 1. The consumer surplus in the market for cheese. 2. The own-price elasticity of demand for cheese at the price of $40 per unit. 3. The reservation price of consumers, at the point where the elasticity of demand is equal to 0.189.

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