Suppose the market demand curve for TV remotes is given by the equation Q_d = 100 - 2P,where P is the price and Q_d is the number of TV remotes demanded.If the market price of TV remotes is $10,then the quantity demanded equals _____ and the value of consumer surplus is _____. A)20;$100 B)80;$200 C)80;$1,600 D)20;$1,600

Question

Quizplus · Accepted Answer

The quantity demanded is 80 (100 - 2 * 10 = 80). Consumer surplus is the area below the demand curve and above the price line, which is a triangle with a base of 80 and a height of 20, so the area is 1/2 * 80 * 20 = $1,600.

Suppose the Market Demand Curve for TV Remotes Is Given