**Problem Statement:**Calculate the consumer's surplus at the indicated unit price $ \bar{p} $ for the demand equation. HINT [See Example 1.] (Round your answer to the nearest cent.)**Demand Equation:**$ p = 80 - q $ $ \bar{p} = 25 $**Instructions:**- Enter your answer in the text box provided below in dollars $$$.- Round your answer to the nearest cent as needed.**Input:**$\$$ [Text Box for Answer]

Consumer surplus refer to the area under the demand curve which is the difference between what a consumer can pay and what it actually pays. According to the equation given: p = 80 - q q = 80 - p Putting values on p (price), calculating the quantity demanded (q): While price on the Y-axis and quantity demanded on the X-axis. At price 25 then quantity demanded of the good is 55. Calculation of consumer surplus : What a consumer can pay is price 90 and what he actually pays is price 25. Thus the shaded area region with green color depicts the consumer surplus. We can find out this shaded area with the help of a formula: We know the area of the triangle is 1/2 base ×height Base = 55 - 25 Height = 80 - 25 Area (consumer surplus) = 12×20×55 = 550 The total consumer surplus will be $550.

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Calculate the consumers' surplus at the indicated unit price p for the demand equation. HINT [See Example 1.] (Round your answer to the nearest cent.) p = 80 – q; p = 25 $

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

**Problem Statement:**

Calculate the consumer's surplus at the indicated unit price $ \bar{p} $ for the demand equation. HINT [See Example 1.] (Round your answer to the nearest cent.)

**Demand Equation:**

$ p = 80 - q $
$ \bar{p} = 25 $

**Instructions:**

- Enter your answer in the text box provided below in dollars $$$.
- Round your answer to the nearest cent as needed.

**Input:**

$\$$ [Text Box for Answer]

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