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Flintstone has quasilinear preferences and his inverse demand function for Brontosaurus Burgers is P Mr. Flintstone is currently consuming 10 burgers at a price of 10 dollars

Flintstone has quasilinear preferences and his inverse demand function for Brontosaurus Burgers is P (b) = 30 − 2b. Mr. Flintstone is currently consuming 10 burgers at a price of 10 dollars. (a) How much money would he be willing to pay to have this amount rather than no burgers at all? ______. What is his level of (net) consumer’s surplus? _______. (b) The town of Bedrock, the only supplier of Brontosaurus Burgers, decides to raise the price from $10 a burger to $14 a burger. What is Mr. Flintstone’s change in consumer’s surplus?

Apr 04 2020 View more View Less

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