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An economic researcher proposed this functional form for the demand for inexpensive headsets designed for smartphones. Q H1 d (P H1 , M, A, PW)

An economic researcher proposed this functional form for the demand for inexpensive headsets designed for smartphones.

QH1d (PH1, M, A, PW) = o + 1PH1+ 2M+ 3A+ 4PH2 + 5N

Setup the demand function if the price for a substitute headset is P1,000.00, income level is P20,000.00, advertising expenditure is P10,000.00, and population size is 50,000 (N). Graph your answer and solve for Consumer Surplus if the price is lowered at P500.00

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