The Demand Function for a Product Is , Where

question 47

Multiple Choice

The demand function for a product is , where p is the number of dollars and x is the number of units. If the equilibrium quantity is $7, what is the consumer's surplus? Round your answer to two decimal places. ​

• A) $22.86
• B) $28.24
• C) $48.00
• D) $62.40
• E) $115.20

---

Definitions:

Percentage of Sales Approach

A method for forecasting financial needs based on a fixed percentage of projected sales, often used in budgeting and financial planning.

Profit Margin Percentage

A profitability ratio calculated by dividing net income by revenue, expressing the result as a percentage.

Plowback Ratio

The proportion of earnings retained by a business, rather than distributed to its shareholders as dividends, to reinvest in the core business or to pay debt.

Dividend Policy Decision

The strategy that a company uses to determine the size and timing of its dividends payments to shareholders.