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Answer question 1. Explain all steps. Use graph if possible to help explain. Smith has an inverse demand function for Burgers that is p(b) =
Answer question 1. Explain all steps. Use graph if possible to help explain.
Smith has an inverse demand function for Burgers that is p(b) = 30 - 2b. The current price of burgers is $10, and Smith eats 10 burgers.
1. The supplier then increases the price from $10 to $14 for each burger. (I know his consumption of burgers decreases from 10 burgers to 8 burgers, but I don't understand how or why it decreased to 8 burgers. Explain everything). Also calculate his net consumer surplus at the new price. Draw the graph to show everything in detail.
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