Question

suppose demand is given by P-120-5Q if the price drops from 80 per unit to 60 what is the change in consumer surplus

Answer 1

4

Explanation:

p=120 -5Q

when p = 80

80 = 120 -5Q

Q=8

and when p= 60

60 = 120 -5Q

Q=12

so, change in consumer surplus = 12-8

= 4