Cindy's demand function for ice cream is Q = 5 – 2P. Draco's demand function for ice cream is Q = 8 – 2· P. By how much does the consumer surplus decrease when the price raises from $2 to $3.2? Round your answer to 2 decimal points.

Cindy's demand function for ice cream is Q = 5 – 2P. Draco's demand function for ice cream is Q = 8 – 2· P. By how much does the consumer surplus decrease when the price raises from $2 to $3.2? Round your answer to 2 decimal points.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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Question

Cindy's demand function for ice cream is Q = 5 – 2P. Draco's demand function for ice cream is
Q = 8 – 2. P. By how much does the consumer surplus decrease when the price raises from $2 to $3.2?
Round your answer to 2 decimal points.
Answer:
3.12
The correct answer is: 3.61

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