Jeong's uncompensated demand for gizmos is given by Q = 30 - 2p.Jeong's marginal willingness to pay function is
A)30-2p.
B)15-.5Q.
C)30-2Q.
D)-2.

Question

Quizplus · Accepted Answer

Marginal willingness to pay (MWTP) is the additional amount a consumer is willing to pay for one additional unit of a good. It is the derivative of the demand function with respect to quantity. From the demand function Q = 30 - 2p, we can solve for p as p = (30-Q)/2. Substituting this in MWTP function, we get MWTP = 15 - 0.5Q. So, the correct choice is B.

Jeong's Uncompensated Demand for Gizmos Is Given by Q =