Exercise 5 Suppose there are two types of consumers in the market for mangos in Fruitland. Consumer type A's inverse demand function is p = 7.5-4 and consumer type B's inverse demand function given by p = 4 – Qß, where Q and Q are the quantity demanded each consumer type. Suppose the market has a total of 10 consumers, 5 consumers of each type. a) Derive the market demand function of mangos. b) Draw the market demand curve of mangos. c) Graphically show and numerically compute the total consumer surplus in the market at p = $2.

Exercise 5 Suppose there are two types of consumers in the market for mangos in Fruitland. Consumer type A's inverse demand function is p = 7.5-4 and consumer type B's inverse demand function given by p = 4 – Qß, where Q and Q are the quantity demanded each consumer type. Suppose the market has a total of 10 consumers, 5 consumers of each type. a) Derive the market demand function of mangos. b) Draw the market demand curve of mangos. c) Graphically show and numerically compute the total consumer surplus in the market at p = $2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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