The optimal is given byx= 0,y= 200. First note that maximizing the utility function given is the same as maximizing {eq}u(x,y) = \max\{x,...
(a) Calculate the gross surplus and consumer (net) surplus at the original price. Interpret these values as if you were explaining it to a no Suppose the demand function for a product is given by the function: D ( q ) = -0....