Eco 302 Intermediate Microeconomics Homework # 4 (30 points) 1. [6 points] Laptoplane is a company which offers internet access at airports to customers who are travelling. The company estimated the average consumer's demand for internet access and it is given in the figure below. a) Calculate the total value an average consumer places on 10 minutes of total internet access? b) Suppose Laptoplane charges $0.60 per minute for internet access. Calculate the consumer surplus.
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From the graph, we can see that at a quantity of 10 minutes, the price is $0.4 per minute. Total value = Price * Quantity = $0.4/min * 10 min = $4 Show more…
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