1. Danielle's demand curve for product is QD(p) = 12 - p. Current price of product is $6.
a. find out Danielle's consumer surplus for this price.
b. find out the point price elasticity for this price.
c. If price of product increased, would Danielle's total expenditure on product increase or decrease? How can you tell?
2. One consumer's demand curve for some product is q1(p) = 16 - p. Another consumer's demand curve is q2(p) = 24 - 2p.
a. Compute the aggregate quantity demanded when the price is $14?
b. Compute aggregate quantity demanded when the price is $10?
c. Draw demand curve for each consumer and aggregate demand curve. Give values for each price and quantity intercept.