Question
Q1 Mister Jones was selling his house. The asking price was $270,000, and Jones decided he would take no less than $215,000. Mister Smith was
Q1 Mister Jones was selling his house. The asking price was $270,000, and Jones decided he would take no less than $215,000. Mister Smith was willing to pay up to $255,000. After some negotiation, Mister Smith purchased the house for $220,000. Smith's consumer surplus is
Q2 Joe's demand for spring water can be represented as p = 19 - Q (where p is measured in $/gallon and Q is measured in gallons). He recently discovered a spring where water can be obtained free of charge. His consumer surplus from this water is
Q3 Sandy's uncompensated demand for candy is given by the equation Q = 16/p, where Q is the quantity of candy and p is the price. When the price of candy rises from $1 to $4, the change in consumer surplus is (in absolute value)
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