Joe's demand for spring water can be represented as p- 15 - 0.8Q (where p is measured in $/ gallon and Q is measured in gallons). He recently discovered a spring where water can be obtained free of charge. His consumer surplus from this water is Your Answer: Answer
Joe's demand for spring water can be represented as p- 15 - 0.8Q (where p is measured in $/ gallon and Q is measured in gallons). He recently discovered a spring where water can be obtained free of charge. His consumer surplus from this water is Your Answer: Answer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Joe's demand for spring water can be represented as p = 15 - 0.8Q (where p is
measured in $/ gallon and Q is measured in gallons). He recently discovered a spring
where water can be obtained free of charge. His consumer surplus from this water is
Your Answer:
Answer

Transcribed Image Text:Sarah and David both have linear demand curves for lemonade. Sarah's demand is
more elastic than David's. At the current price of $0.50 per glass, they both choose
to buy 5 glasses. A change in the price of lemonade to $0.75 per glass will
decrease Sarah's consumer surplus more than David's.
increase Sarah's consumer surplus more than David's.
increase David's consumer surplus more than Sarah's.
decrease David's consumer surplus more than Sarah's.
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