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This problem involves a linear demand function with one price change. The demand function for good X1 is linear with respect to the price of
This problem involves a linear demand function with one price change. The demand function for good X1 is linear with respect to the price of x: (called p1): 61:09pm): q: = 19 - 0-7291 + 439% The project decreases the price of X1 from p31 = $15 to pb1= $12. The price of X2 remains unchanged, such that p2= $3. The quantity of x1 is not expressed in single units, it is expressed in hundreds of units. The time unit of demand is days. 1a. (5 pts) Compute the willingness-to-pay using the geometry technique. 1b. (5 pts) What is the antiderivative of the demand function, given that we are interested in the willingness-to- pay for the change in the price of n? (Hint: Simplify q{(p1,p2) such that it is only in terms of 391. Once the expression is mathematically analogous to the general form, u), you can solve for F(u).) 1c. (10 pts) Compute the willingness-to-pay using the integral technique
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