Consider a market characterized by the following inverse dem

Consider a market characterized by the following inverse demand and supply functions: P_X = 30 – 3Q_X and P_X = 10 + 2Q_X. Compute the surplus consumers receive when a $24 per unit price floor is imposed on the market.

B.A.$0.

$12.

C.$24.

D.$6.

D.$6.

Explanation:

Before price floor, equilibrium price was $18 and quantity was 4 units and maximum price is $30

The CS = (30-18) *4 /2 = $24

Before price floor of $24

CS = (30-24 *2 /2 = $6

Consider a market characterized by the following inverse demand and supply functions: PX = 30 – 3QX and PX = 10 + 2QX. Compute the surplus consumers receive whe

Consider a market characterized by the following inverse dem

Solution

Get Help Now

Submit a Take Down Notice