The inverse demand curve facing a firm is . if determine the consumer 푝=푎―푏푄푝=푎2surplus. this will be a general equation. b. this general equation may seem abstract. recall that in general, consumer surplus is the area under the demand curve and above the price. let 푎=100, 푝=푎2 solve for consumer surplus using the basic ½(base*height) =50, 푎푛푑푄=100.formula. then solve using the general equation you generated in 1a. show that they are the same.

Jimmy's delicatessen sells large tins of tom tucker's toffee. the deli uses a periodic review system, checking inventory levels every 88 days, at which time an order is placed for more tins. order lead time is 22 days. daily demand is a constant 1515 tins, so average demand during the reorder period and order lead time (1010 days) is 150150 tins. draw a sawtooth diagram. assume that the beginning inventory level is equal to the restocking level and the desired service level is 99.9%. what is the safety stock level? (hint: look at the formula for calculating restocking level.) what is the average inventory level? the safety stock level is average inventory level is __chart: time (10,20,30), tins (0,150) lines touching both axisthe safety stock level is 0 tinsthe average inventory level is 75 tins