The demand function for a commodity is , then the consumer's surplus at equilibrium price is
The demand function for a commodity is , then the consumer's surplus at equilibrium price is
Solution
✅ Correct Option: 3
The equilibrium price is .
The demand function is .
Setting :
This gives or .
Since quantity cannot be negative, .
Consumer's surplus is given by:
Evaluating the integral:
At :
At : the value is .
Therefore,
Consumer's surplus:
Therefore, the consumer's surplus at equilibrium price is .
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