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31 May, 00:04

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.

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Answers (2)
  1. 31 May, 01:25
    0
    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.
  2. 31 May, 01:57
    0
    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.
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