Answer to Question #90938 in Microeconomics for 1111111

Question #90938
True or False: If the price of haircuts rises from $10 to $11, consumers' surplus will fall by 10%
1
Expert's answer
2019-06-21T09:18:20-0400

Calculation for decrease in consumer’s surplus;

Initial price= $10

Current price after increase: $11

The difference here is ($11-$10) = $1

In terms of percentage you divide the $1 with the initial price($10) and multiply it by 100%

= 1/10 * 100%

=10%

Thus, it is actually true that consumers’ surplus has fallen by 10%.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS