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Zorluk: ZorConcept and Calculation of Consumer Surplus

A consumer's demand function for petrol in a local Nigerian market is given by the linear equation P=200−8QP = 200 - 8Q, where PP represents the price per liter in Naira and QQ represents the quantity demanded in liters. If the current market price of petrol is established at N80\text{N}80 per liter, calculate the consumer surplus in Naira.

Cevap: 900 Naira

Cevap

The value of the consumer surplus is 900 Naira.
Consumer surplus is the difference between total willingness to pay and total actual expenditure. Graphically, for a linear demand curve, it is the area of the triangle bounded by the price axis, the market price line, and the demand curve. With market price P = 80 Naira and quantity Q = 15 liters, the price intercept is 200 Naira. The area of the triangle is calculated as 0.5 * 15 * (200 - 80) = 900 Naira.

Adım Adım Çözüm

1
Determine quantity demanded at the market price
Q = 15 liters
Substitute P = 80 into the demand equation P = 200 - 8Q and solve for Q.
2
Find the maximum willingness to pay (vertical axis intercept)
P_max = 200 Naira
At zero quantity consumed (Q = 0), the maximum price the consumer is willing to pay is 200 Naira.
3
Calculate the area of the triangular consumer surplus region
Consumer Surplus = 900 Naira
Consumer Surplus = 0.5 * Base * Height = 0.5 * 15 * (200 - 80) = 900.

Anahtar Kavram

Calculation of Consumer Surplus from a Linear Demand Function
Tahmini Süre:2m 0s
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Concept and Calculation of Consumer Surplus

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