type your question herassume there are two types


Type your question her

Assume there are two types of consumers: type A consumers have a demand

Q =10

P for widgets, and consumers of type B have a demand Q = 5P. Assume that there are 10 consumers of each type.

(a) Calculate the market demand.

(b) Assume that the market price for the good is $4 due to perfectly elastic industry supply. Using the market demand function, calculate the total consumers surplus.

(c) Calculate the total consumers surplus using individual demand functions.

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Econometrics: type your question herassume there are two types
Reference No:- TGS0500760

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