Suppose This Table Shows Your Demand Schedule for Buffalo Chicken

question 62

Essay

Suppose this table shows your demand schedule for Buffalo chicken wings.(a)What is your total utility from four wings? (b)What is your marginal utility from the fifth wing? (c)If the price is $.25,how much will your consumer surplus be?
$$\begin{array} { | c | c | c | c | } \hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \\\hline \$ 1.00 & 1 & & \\\hline \$ .90 & 2 & & \\\hline \$ .80 & 3 & & \\\hline \$ .65 & 4 & & \\\hline \$ .50 & 5 & & \\\hline \$ .40 & 6 & & \\\hline \$ .25 & 7 & & \\\hline \$ .10 & 8 & & \\\hline\end{array}$$

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Definitions:

Inverse Demand Function

A mathematical representation showing how the quantity demanded of a good or service changes as its price changes, holding everything else constant.

Unit Tax

A tax that is imposed on a product based on a fixed amount per unit, rather than a percentage of the price.

Output

The cumulative quantity of products or services generated by a business, sector, or economic system over a given timeframe.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain it.