Multiple Choice
Suppose an individual demand curve is given by P = 100 - 5Q, where P is the price of smoothies and Q is the quantity she consumes. Assuming her income per week is $1,000 and the current price of smoothies is $5 each, by how much will her consumer surplus decline if the price of smoothies increased to $10 each?
A) $92.5
B) $810
C) $950
D) $25
Correct Answer:
Verified
Correct Answer:
Verified
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