Question
(a) The equilibrium price is $5 and the equilibrium quantity is 3,000 units per week. The consumer surplus is the area between the demand curve
(a) The equilibrium price is $5 and the equilibrium quantity is 3,000 units per week. The consumer surplus is the area between the demand curve and the price linetriangle ABC in the diagramwhich is $4,500 per week. The producer surplus generated is the area of triangle ABD, which is $4,500 per week. Therefore, the total economic surplus is $9,000 per week
here's an answer of this question: Suppose the weekly demand for a certain good, in thousands of units, is given by the equation P = 8 - Q and the weekly supply of the good, also in thousands of units, is given by the equation P = 2 + Q, where P is price in dollars. (a) Calculate the total weekly consumer surplus, producer surplus and economic surplus generated in the market equilibrium.
how did we get the 4500 $ for ABC and ABD
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