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Question: 22 the invers e demand function of a group of...

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2.2 The invers e demand function of a group of consumers for a given type of widgets is given by the following expression: π-10a + 2000 ($) where q is the demand and r is the unit price for this product. a Determine the maximum consumption of these consumers. b Determine the price that no consumer is prepared to pay for this product. c Determine the maximum net consumers surplus. Explain why the consumer will not be able to realize this surplus.

Fundamentals of Power System EcoHon consumers g surplus, the revenue collected by the producers, and the consumer e If the price increases by 20%, calculate the change in consumption and d For a price π of 1000 $/unit, calculate the consumption, the cons rs net surplus. change in the revenue collected by the producers. f What is the price elasticity of demand for this product and this group of consumers when the price π is 1000 $/unit. g Derive an expression for the gross consumers surplus and the net consumers surplus as a function of the demand. Check these expressions using the results of part d. h Derive an expression for the net consumers surplus and the gross consumers surplus as a function of the price. Check these expressions using the results of part d.

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