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Suppose an Individual Demand Curve Is Given by P =

question 34

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Suppose an individual demand curve is given by P = 100 - 5Q, where P is the price of smoothies and Q is the quantity she consumes. Assuming her income per week is $1,000 and the current price of smoothies is $5 each, by how much will her consumer surplus decline if the price of smoothies increased to $10 each?


Definitions:

T-statistic

A statistic calculated from a dataset to compare the mean of the data to a hypothetical mean as part of a t-test.

Critical Value

The boundary value from a statistical distribution where, if the observed test statistic is beyond this point, the null hypothesis is rejected.

Null Hypothesis

A default statement suggesting that there is no statistical significance between the specified datasets, or no effect of a certain variable.

T-statistic

A type of statistic used in hypothesis testing, calculated as the difference between an observed sample mean and a hypothesized population mean, divided by the standard error of the mean.

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