Plotting the demand curve

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Reference no: EM1316905

Consumer Surplus: Equations. Eric Cartman likes to rent computer games on DVDs from a local

Blockbuster outlet in South Park. Cartman's DVD rental demand curve can be written:

QD = 5 - 0.2P

where QD is the number of DVD rentals and P is the rental price per month.

A. Plot Cartman's DVD rental demand curve, using price as a function of the quantity demanded.

B. Use the demand curve to help you calculate the number of DVDs rented per month and the amount of consumer surplus derived at a rental price of $5.

 

Reference no: EM1316905

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