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Suppose that the demand curve is q[p)=1D-p. What is the consumer surplus from consuming 6 units of the good? Assume p=4. If the price changes
Suppose that the demand curve is q[p)=1D-p. What is the consumer surplus from consuming 6 units of the good? Assume p=4. If the price changes to $6 what is the change in consumer surplus? Assuming only discrete quantities of the good can be purchased, what is the consumer surplus from the 2nd unit of the good? (Hint: consider what the consumer would pay for the rst unit, then the second unit, and compare that to the price of $6.]
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