1. Section 4.6 1. If the demand function is d (x) = 4000 - 12x dollars, find the consumers’ surplus at the demand level of x = 100. d (100) = 2800 so Consumers’ surplus = $60,000.

2. 2. If the demand function is d (x) = 350 – 0.09x 2 dollars, find the consumers’ surplus at the demand level of x = 50. d (50) = 350 – 225 = 125 so Consumers’ surplus = $7,500.

3. 3. Find the Gini index for the Lorenz curve L (x) = x 3.2. This was the Lorenz curve for the US in 1929. Gini index = 0.52.

4. 4. Find the Gini index for the Lorenz curve L (x) = x 2.38. This was the Lorenz curve for the US in 2000. Gini index = 0.41.