The generator is a popular youth hostel in london located near kings cross. The hostel provides a bed, showers, and breakfast in their nightly fee. Suppose the quantity demanded is 0 when the price is $90 per night and 90 when the price is $10 per night. Quantity supplied is 0 when the price is $10 and 100 when the price is $80.

Question

Shyanne

Business

22 December, 12:26

The generator is a popular youth hostel in london located near kings cross. The hostel provides a bed, showers, and breakfast in their nightly fee. Suppose the quantity demanded is 0 when the price is $90 per night and 90 when the price is $10 per night. Quantity supplied is 0 when the price is $10 and 100 when the price is $80.

+2

Answers (2)

Know the Answer?

Marlon Leach · Answer 1

The answer is $2000.

Explanation:

Total surplus = Consumer surplus + Producer surplus

= [ 0.5 (50-0) x (90 - 45) ] + [ 0.5 (50-0) x (45 - 10) ]

= [ 0.5 x 50 x 45] + [ 0.5 x 50 x 35]

= 1125 + 875

Total Surplus = $2000.

Sincere Heath · Answer 2

The answer is $2000.

Explanation:

Total surplus = Consumer surplus + Producer surplus

= [ 0.5 (50-0) x (90 - 45) ] + [ 0.5 (50-0) x (45 - 10) ]

= [ 0.5 x 50 x 45] + [ 0.5 x 50 x 35]

= 1125 + 875

Total Surplus = $2000.