Question
A person's demand and supply equations for rice per month are as following: Demand: Q = 40 - 5*P Supply : Q = -20 +
A person's demand and supply equations for rice per month are as following:
Demand: Q = 40 - 5*P
Supply : Q = -20 + 10*P
Required:
What are the market equilibrium price ($/kg) and quantity (kgs/month) for rice?
At the market equilibrium price, what are the consumer surplus and producer surplus?
If the rice price rises to $5/kg,
What are the consumer surplus and producer surplus?
What is the impact of this rice price increase on the consumers and producers as a whole?
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
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