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Rhea's inverse demand for a good is given by ?=18.00−(2.50×?). Assuming that there are enough suppliers...

Rhea's inverse demand for a good is given by ?=18.00−(2.50×?). Assuming that there are enough suppliers to meet her demand, if the per-unit price increases from ?=2.00 to ?=7.00, what is her change in consumer's surplus? (Round to the nearest two decimals. Include a negative sign to represent a decrease in consumer's surplus, if necessary.)

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Expert Solution

Ans. When the price increases from P = $2.00 to P = $7.00, Rhea's consumer surplus decreases by $27.

Rahul Sunny answered 2 years ago
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