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anastassius [24]
3 years ago
13

The demand function for widgets is given by D(P) 16 2P. Compute the change in consumer surplus when the price of a widget increa

ses from $1 to $3. Illustrate your result graphically.

Business
1 answer:
eduard3 years ago
8 0

Question: The demand function for widgets is given by D(P) = 16 − 2P. Compute the change inconsumer surplus when price of a widget increases for $1 to $3. Illustrate your result graphically

Answer:

For price of a widget equal to $1 consumer surplus is

D(1) = 16 - 2(1) = 14

CS₁ = ½ × (8 – 1) × D(1) = ½ × 7 × 14 = 49.

When price is equal to $3 consumer surplus is

D(3) = 16 - 2(3) = 10

CS₃ = ½ × (8 – 3) × D(3) = ½ × 5 × 10 = 25

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<h3>What is bad debts expenses?</h3>

Bad debt are debts owned to a business which cannot be recovered. Here, the customer has chosen not to pay this amount.

Computation of amount to be debited to Bad Debts Expense:

=  Accounts Receivable, debit balance of $97,800 *  3% of outstanding accounts receivable at the end of the current year

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= $2,934

Then,

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Learn more about bad debts expenses here : brainly.com/question/18568784

4 0
2 years ago
Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. Th
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6 0
3 years ago
Suppose that you are a buyer. your buyer value is $30 and you buy a book for $40. what is your gain or loss?
Serjik [45]
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The ACME company manufactured x brooms per month from January to April, inclusive. On the first of each month, during the follow
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Solution:

Pick some smart number for x,

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= 28

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