The demand function for a certain model of Blu-ray player is given by p = 600 0.5x + 2 where p is the unit price in dollars and x (in units of a thousand) is the quantity demanded per week. What is the consumers' surplus if the selling price is set at $200/unit? (Round your answer to the nearest dollar.)

The demand function for a certain model of Blu-ray player is given by p = 600 0.5x + 2 where p is the unit price in dollars and x (in units of a thousand) is the quantity demanded per week. What is the consumers' surplus if the selling price is set at $200/unit? (Round your answer to the nearest dollar.)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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Question

The demand function for a certain model of Blu-ray player is given by

p =

600

0.5x + 2

where p is the unit price in dollars and x (in units of a thousand) is the quantity demanded per week. What is the consumers' surplus if the selling price is set at $200/unit? (Round your answer to the nearest dollar.)

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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