Math  /  Word Problems

QuestionAn entrepreneur opens a go-kart track. Demand for minors is q1=2010pq_{1}=20-10p and for adults q2=102pq_{2}=10-2p.
a) What price if no differentiation? b) What price if differentiation is allowed? c) Set entry fees for minors and adults if tariffs can differ by group?

Studdy Solution
Question: What is the consumer surplus for adults if the price for adults is set at $2.5?
A) 6.25 B) 7.5 C) 8.75 D) 5
Answer: A) 6.25

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