Consider a Market With $Q ^ { d } = 240 - 4 P + 2 I$

question 15

Multiple Choice

Consider a market with $Q ^ { d } = 240 - 4 P + 2 I$ and $Q ^ { s } = 6 P$ . Suppose that initially income is I = 60, and that income then increases to I = 80. What is the increase in consumer surplus from this increase in income?

• A) 1,300
• B) 1,368
• C) 1,421
• D) 1,472

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