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Consider a market characterized by the following demand and supply functions: Px = 10 - 20x and Px = 2 + 2Qx . Draw the
Consider a market characterized by the following demand and supply functions: Px = 10 - 20x
and Px = 2 + 2Qx
- . Draw the demand and supply functions in a two dimensional price-quantity plane.
- . Find the equilibrium price and quantity.
- . Compute the surplus received by consumers and producers.
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