Thread: Consumers willingness to spend

Suppose that the consumers demand function for a certain commodity is D(q)=50-3q-q^2 dollars per unit:

A. Find the number of Units that will be bought if the market price is $32 per unit.

I got q=3 which was right but I got part B wrong!

B.Compute the consumers willingness to spend to get the number of Units in part (a).

I got 31.50 but that was the answer to part c! I just want to see how its done for part B so I have the right answer so I can use the material to study for my final exam...Thanks!

Originally Posted by lisa1984wilson

Suppose that the consumers demand function for a certain commodity is D(q)=50-3q-q^2 dollars per unit:

A. Find the number of Units that will be bought if the market price is $32 per unit.

I got q=3 which was right but I got part B wrong!

B.Compute the consumers willingness to spend to get the number of Units in part (a).

I got 31.50 but that was the answer to part c! I just want to see how its done for part B so I have the right answer so I can use the material to study for my final exam...Thanks!

isn't it as simple as plugging in q = 3 into the given equation? what do you mean by "willingness to spend"? how much money they are willing to pay for the product?

Yeah I believe that's what it means...maybe I was over thinking the problems..been studying like crazy!

Originally Posted by lisa1984wilson

Yeah I believe that's what it means...maybe I was over thinking the problems..been studying like crazy!

ok, yeah, so plug in 3, and see if you get the right answer. because (provided we are interpreting "willingness" correctly) that makes sense, hopefully you see why