A Fast-Food Outlet Finds That the Demand Equation for Its $p = \frac { 6,750 } { ( q + 5 ) ^ { 2 } }$

question 92

Multiple Choice

A fast-food outlet finds that the demand equation for its new side dish, "Sweetdough Tidbit", is given by $p = \frac { 6,750 } { ( q + 5 ) ^ { 2 } }$ where p is the price (in cents) per serving and q is the number of servings that can be sold per hour at this price. At the same time, the franchise is prepared to sell $q = 0.5 p - 5$ servings per hour at a price of p cents. Find the consumers' surplus at the equilibrium price level.

• A)$6.06
• B) $6.04
• C) $6.00
• D) $6.10
• E) $6.02

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Definitions:

Appropriate Resolution

The optimal level of detail and clarity in an image or display, tailored to the specific requirements of a project or device.

Moral Responsibility

The obligation to act correctly and make decisions based on ethical principles, often considered in the context of social and personal conduct.

Fair Play

The adherence to equitable and impartial standards of conduct or rules in games, sports, or other competitions.

Goodwill

An intangible asset representing the value of a business's reputation, brand, and customer relationships.