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4. Assume one equation for a good is P = 5000 300Q and a second equation for that good is P = 2000 + lSOQ.
4. Assume one equation for a good is P = 5000 300Q and a second equation for that good is P = 2000 + lSOQ. Assume Q is the quantity and P is price. Remember you must show all your math work. a. Determine the equilibrium price and quantity. (10 points) b. Graph your result from above on the axes below label everything, including the demand and supply curves, the axis intercepts, and the consumer and producer surplus areas. (10 points) c. Determine the values of the consumer surplus, producer surplus, and total surplus for this market. (20 points) d. Suppose the price is currently equal to $2500 in this market. Is there a shortage or surplus in this market, and how large is the shortage/surplus? (10 points)
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