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Becky's weekly demand curve for drinks is q=12 - 1/2p a. The pub on the corner sells drinks for $6. How many drinks will Becky

Becky's weekly demand curve for drinks is

q=12 - 1/2p

a. The pub on the corner sells drinks for $6. How many drinks will Becky buy, and what is her consumer surplus?

b. A new bar opens across the street. At the new bar, drinks are $4, but you have to pay a $20 (weekly) cover charge to go into

the bar. Will Becky go to the new bar or to her original pub?

c. Now suppose that the pub closes. Will Becky be willing to go to the bar now?

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