Give the demand function for a commodity
[tex]Qd=\frac{80}{p}[/tex]where
Qd= Quantity demand
p= price
the pirce drops from $8 to $4 per unit
then
[tex]Qd1=\frac{80}{8}=10[/tex][tex]Qd2=\frac{80}{4}=20[/tex]the consumer surplus is give by
[tex]Qs=\frac{1}{2}Qd*(p)[/tex]then
[tex]Qs1=\frac{1}{2}(10)(8)[/tex][tex]Qs1=45[/tex][tex]Qs2=\frac{1}{2}(20)*4[/tex][tex]Qs2=40[/tex]the change is given by
[tex]change=Qs1-Qs2[/tex][tex]change=45-40[/tex][tex]change=5[/tex]the change in the consumer surplus is $5
rounded 3 decimal places $5. 000
