Suppose that the demand for electricity is approximately Q= 2800 - 40P.

	3.2.	The marginal consumer is the person is on the edge of buying and not buying. If the price is $20, what is the valuation of the marginal consumer?

Suppose that the demand for electricity is approximately Q= 2800 - 40P.

3.5.

Suppose price falls to $15 from $20, and the consumer surplus is now $60,500. How is the new consumer surplus divided between pre-existing and new consumers?

		A.$5,250 goes each to new and pre-existing consumers
		B.$10,500 goes to pre-existing consumers
		C.$10,000 goes to pre-existing consumers $500 goes to new consumers
		D.$10,500 goes to new consumers
		E.$10,000 goes to new consumers, $500 goes to pre-existing consumers

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Suppose that the demand for electricity is approximately Q= 2800 - 40P.

3.4.

What is the market's consumer surplus when P = 20?

Suppose that the demand for electricity is approximately Q= 2800 - 40P.

3.3.

Transform this demand into a willingness-to-pay expression (i.e., inverse demand).