1.Suppose that the demand for a product is given as follows:

P = 500-3Q,

and that the supply for that product can be written as:

P = 100+2Q

a.Identify the market equilibrium price and quantity.

The market equilibrium is the point where supply and demand intersect. To find that point we can set the demand and supply curve equal to each other and solve for the Q.

b.How much consumer surplus do consumers in this market enjoy? Show your calculations.