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Q. Assume to there are two segments to the market for rental cars. The Demand for rental cars by trade travelers is Qb = 35 - 0.25P also the Demand for rental cars by vacation travelers is Qv = 120 -1.5P. (As (most of the time) in class, rental cars should be treated as
perfectly divisible. For example, one might have 3.25 cars.)

(a) Graph the market Demand curve. Be sure to provide numerical coordinates for any particularly key point(s) on this Demand curve.

(b) Assume to the present price is P = $40. Illustrate what is consumer surplus?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9169939

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