Assume the Inverse Demand Function for a Good Can Be

question 19

Multiple Choice

Assume the inverse demand function for a good can be written as: P = 30 - 2Q.Assuming P = $10,the resulting consumer surplus would be equal to:

• A)$50.
• B)$100.
• C)$200.
• D)$225.

---

Definitions:

Transitivity

A principle in decision making that if option A is preferred over B, and B is preferred over C, then A should be preferred over C.

Marginal Utility

The extra pleasure or advantage obtained from using an additional unit of a product or service.

Potato Chips

A popular snack made from thin slices of potatoes that are fried or baked until crispy, often seasoned with various flavors.

Cola

A carbonated soft drink flavored with extract from cola nuts along with other flavorings.