Identify the Equation and Variable That Makes the Substitution Method

question 22

Short Answer

Identify the equation and variable that makes the substitution method easiest to use. Then solve the system.

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Definitions:

Consumer Surplus

A mismatch between the price consumers feel prepared to pay for a good or service, and the actual outlay.

Competitive Price

A price that is in line with or slightly below the market average, aiming to attract customers in a competitive environment.

Total Surplus

is the sum of consumer surplus and producer surplus, representing the overall economic benefit to society from trade or market activity.

Consumer Surplus

The split between the sum consumers would ideally pay for a good or service and the sum they actually end up paying.