Question

Joe's demand for spring water can be represented as p = 10 Q (where p is...

Joe's demand for spring water can be represented as p = 10 Q (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 −

A. $0.

B. $100.

C. $50.

D. unknown based upon the information provided.

i know the correct answer is C, but why?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that the market demand curve for residential water is: Q D = 10 – 2.25...
Suppose that the market demand curve for residential water is: Q D = 10 – 2.25 P and the market supply curve is: Q S = –10 + 2.75 P where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. a. Calculate the equilibrium price and quantity. b. Calculate the consumer surplus at the equilibrium price
Let’s say the demand for burritos can be represented by Qd= 10-3P and the supply can...
Let’s say the demand for burritos can be represented by Qd= 10-3P and the supply can be represented by Qs= 2+P. At equilibrium: a P = 4, Q= 2. b P= 2, Q= 4.    c P = 4, Q= 4. d P = 2, Q = 5.   We refer to a situation where Qs>Qd as a _____. Price will ____ until mkt equilibrium is achieved. a Shortage, increase b Surplus, decrease c Surplus, increase d Shortage, decrease Qd= 800-16P...
The demand for mysterious good X in Lansing is Q = 12 ? P, where P...
The demand for mysterious good X in Lansing is Q = 12 ? P, where P is the price of good X per pound and Q is the quantity demanded in pounds. The marginal cost of producing the good is $2 per pound. There is no fixed cost of producing the good. There is only one firm, Alice, who can produce the good. Alice cannot price discriminate against any consumer. (a) What is the marginal revenue curve? (b) What is...
A.1. a. Suppose the demand function P = 10 - Q, and the supply function is:...
A.1. a. Suppose the demand function P = 10 - Q, and the supply function is: P = Q, where P is price and Q is quantity. Calculate the equilibrium price and quantity. b. Suppose government imposes per unit tax of $2 on consumers. The new demand function becomes: P = 8 – Q, while the supply function remains: P = Q. Calculate the new equilibrium price and quantity. c. Based on (b), calculate the consumer surplus, producer surplus, tax...
Suppose there are two consumers of a public good, one with a marginal benefit of 10-Q;...
Suppose there are two consumers of a public good, one with a marginal benefit of 10-Q; the other a marginal benefit of 30-2Q, where Q is the quantity of that public good. The public good can be provided with MC = 20. a) how many quantities of the public good will be provided assuming that the low-demand consumer will free ride on the high-demand consumer? b) what is the sum of total consumer surplus to the two consumers under a...
Suppose the market for soda is represented by the following supply and demand equations: QS =...
Suppose the market for soda is represented by the following supply and demand equations: QS = 35P – 39.75 and QD = 10.25 – 5P, where P is price per bottle and Q measures bottles per second. a. What are the value of consumer and producer surplus? b. If the government imposes a $0.50 tax per bottle, what are the value of consumer and producer surplus? c. What is the deadweight loss from the tax? How much revenue does the...
. The demand for mysterious good X in Lansing is Q = 12 ? P, where...
. The demand for mysterious good X in Lansing is Q = 12 ? P, where P is the price of good X per pound and Q is the quantity demanded in pounds. The marginal cost of producing the good is $2 per pound. There is no fixed cost of producing the good. There is only one firm, Alice, who can produce the good. Alice can perfectly price discriminate. Rather than naming the price for each quantity sold, Alice uses...
. Suppose that, in the market for cars, demand is given by P= 10 – Q...
. Suppose that, in the market for cars, demand is given by P= 10 – Q and supply is given by P= Q. A. What is the market price that maximises total economic surplus? B. Illustrate on a graph and calculate consumer and producer surplus at this price. (Remember to clearly label any relevant prices and quantities.) C. Explain why no other market price leads to a Pareto efficient outcome. (You can draw the graph, take a picture and attach...
Suppose that mountain spring water can be produced at no cost and that the inverse demand...
Suppose that mountain spring water can be produced at no cost and that the inverse demand is given by: P = 400 - Q. What is the profit-maximizing price of mountain water for a monopolist? Group of answer choices 200 250 125 100
Cournot Competition The market demand for a good is represented by P = 400 ? 20Q....
Cournot Competition The market demand for a good is represented by P = 400 ? 20Q. Firms are symmetric with cost functions C = 30q. Assume the firms compete in a Cournot Oligopoly (i.e., simultaneous choices of quantity). (d) Compute prices quantities, and consumer surplus under perfect competition in which each firm in the market takes price as a given. (e) Now, think of a case where there are N firms. What are equilibrium prices and quantities, and how do...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT