The Demand Function for a Product Is , Where

question 134

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

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Definitions:

Price Discrimination

The strategy of selling the same product to different customers at different prices based on the willingness to pay.

Consumer Surplus

The disparity between the amount consumers propose to pay for a good or service and the amount they finally pay.

Profits

The financial gain obtained when the revenue from business activities exceeds the costs and expenses incurred in operating the business.

Price Discrimination

An approach where the same goods or services, either identical or very similar, are priced differently by the same seller in distinct markets.