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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

  1. . Draw the demand and supply functions in a two dimensional price-quantity plane.
  2. . Find the equilibrium price and quantity.
  3. . Compute the surplus received by consumers and producers.

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