Consider a market with the following supply and demand functions: Demand: = 100 2 Supply: = 2
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Question:
Consider a market with the following supply and demand functions:
Demand: = 100 2
Supply: = 2 - 20
a) Determine the equilibrium quantity and price in this market.
b) Calculate the consumer surplus by integrating the demand function from the equilibrium quantity to the quantity demanded at a price of zero.
c) Calculate the producer surplus by integrating the supply function from the equilibrium quantity to the quantity supplied at a price of zero.
Show all the necessary steps in your calculations and provide the final values for consumer surplus, producer surplus and total surplus.
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