The Demand Function for a Certain Make of Replacement Cartridges

question 132

Short Answer

The demand function for a certain make of replacement cartridges for a water purifier is given by where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the consumers' surplus if the market price is set at $1/cartridge. Round your answer to the nearest dollar.
CS = $__________

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Definitions:

Time To Expiration

The remaining period until the expiration date of a financial instrument, typically an option or futures contract.

Option's Intrinsic Value

The difference between the current price of the underlying asset and the strike price of an option, assuming the option is in-the-money.

Strike Value

The predetermined price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Market Value

The present cost at which a service or asset is available for purchase or sale in a free market.