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3. Suppose the inverse demand curve is given by P(q) = 100-10q and the consumer currently has 5 units of the good. a. How
3. Suppose the inverse demand curve is given by P(q) = 100-10q and the consumer currently has 5 units of the good. a. How much money would you have to give him to compensate him for reducing his consumption of the good to zero? b. Suppose now that the consumer is purchasing the 5 units at a price of $50 per unit. If you require him to reduce his purchases to zero, how much money would be necessary to compensate him?
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