Question

The number of “Biden in 2020” campaign buttons demanded on a certain university campus is given by the function D(p) = 100 – p, where p is the price of buttons in cents. The supply function is S(p) = p. The university administration manages to enforce a price ceiling of 40 cents per button. The change in the consumers’ surplus is

Select one:

a. a decrease in $1.00.

b. an increase of $3.50.

c. an increase of $5.50.

d. a decrease in $5.50.

e. a decrease of $3.50.

Answer 1