Suppose the market demand for good X is given by Q_X^d = 20 − 2P_X.If the equilibrium price of X is $5 per unit,then consumers' expenditure on X is:

Question

Quizplus · Accepted Answer

Consumers' expenditure on good X is calculated by multiplying the equilibrium price by the quantity demanded at that price. The demand equation is given as Qd = 20 - 2P. Substituting the equilibrium price of $5 into the demand equation gives Qd = 20 - 2(5) = 10. Therefore, consumers' expenditure is 10 units * $5/unit = $50.

Suppose the Market Demand for Good X Is Given by QXd

Suppose the Market Demand for Good X Is Given by Q_X^d