Albin has quasilinear preferences and he loves pretzels. His inverse demand function for pretzels is p(x)= 49-6x, where x is the number of pretzels that he consumes. He is currently consuming 8 pretzels at a price of $1 per pretzel. If the price of pretzels rises to $7 per pretzel, the change in Albin’s consumer surplus is?
The correct answer is $45.
If you could show me how to work out the problem I would appreciate it.
Albin has quasilinear preferences and he loves pretzels. His inverse demand function for pretzels isp(x)= 49-6x, where x is the number of pretzels that he consumes. He is currently consuming 8…
