The demand curve for product X is given by QXd = 520 - 4PX. a. Find the inverse demand curve. PX = -QXd Instructions: Round your answer to the nearest penny (2 decimal places). b. How much consumer surplus do consumers receive when Px = $50? $ c. How much consumer surplus do consumers receive when Px = $30? $ d. In general, what happens to the level of consumer surplus as the price of a good falls? The level of consumer surplus increases as the price of a good falls.
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Step 1
To find the inverse demand curve, we need to solve the demand curve equation for PX. QXd = 520 - 4PX Add 4PX to both sides: 4PX + QXd = 520 Now, divide both sides by 4: PX = (520 - QXd) / 4 This is the inverse demand curve. b. To find the consumer surplus Show more…
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