Author Question: The market demand curve for a popular teen magazine is given by Q = 80 - 10P where P is the magazine ... (Read 102 times)

amal · **on:** Jul 1, 2018

The market demand curve for a popular teen magazine is given by Q = 80 - 10P where P is the magazine price in dollars per issue and Q is the weekly magazine circulation in units of 10,000.

If the circulation is 400,000 per week at the current price, what is the consumer surplus for a teen reader with maximum willingness to pay of 3 per issue? A) 2.00
B) 1.00
C) Zero
D) -1.00

Question 2

A local restaurant offers early bird price discounts for dinners ordered from 4:30 to 6:30 PM. This is an example of

A) peak-load pricing.
B) second-degree price discrimination.
C) a two-part tariff.
D) tying.
E) none of the above