1. award: 1.50 out of
2.50 points
The demand curve for product X is given by QXd = 500 – 5PX.
a. Find the inverse demand curve.
PX = 100 – 0.2 QXd
Instructions: Round your answer to the nearest penny (2 decimal places).
b. How much consumer surplus do consumers receive when Px = $45?
$91.00
c. How much consumer surplus do consumers receive when Px = $25?
$95.00
d. In general, what happens to the level of consumer surplus as the price of a good falls?
The level of consumer surplus increases as the price of a good falls.
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