Fold Back This Decision Tree

question 30

Essay

Fold back this decision tree. Clearly state the decision strategy you determine.
​

---

Definitions:

Consumer Surplus

The distinction between the ideal payment consumers are willing to make for a product or service and the real cost they incur.

Equilibrium Price

The price at which the quantity of goods demanded by consumers equals the quantity of goods supplied by producers, leading to market balance.

Price Elasticity

The degree to which the demand or supply of a product changes in response to a change in price.