Suppose the market demand for a good is described by the equation p = 80 - 2q. if a change in market supply results in price decreasing from p0 = $60 to p1 = $50, then the resulting change in consumer surplus is:

Calculate Q (consumer surplus) when P = 60

 ⇒ Subtract 60 from both sides

 ⇒ Add 2Q to both sides

 ⇒ Divide both sides by 2



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Calculate Q when P = 50







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As the value of P decreasing, the value of Q increases from 10 to 15

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