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matrenka [14]
3 years ago
9

The current price for a good is ​$​, and units are demanded at that price. The price elasticity of demand for the good is . When

the price of the good drops by percent to ​$​, consumer surplus _______ increases decreases by ​$ nothing. ​(Enter your response to the nearest​ penny.)
Business
1 answer:
Harman [31]3 years ago
3 0

Answer:

Consumer surplus decreases by $180.

Explanation:

Current consumer surplus =  $25 * 90 unit = $2250

If the price of goods drop to $23 then the new consumer surplus will be

$23 * 90 units = $2070

The change in consumer surplus is $180 .

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