Question
Consider the following demand and supply equations: P=20-5Q and P=10+2Q. (f) As an apple seller, should you increase or decrease the price of apples to
Consider the following demand and supply equations: P=20-5Q and P=10+2Q.
(f) As an apple seller, should you increase or decrease the price of apples to increase your revenue?
(g) Calculate the consumer surplus and producer surplus in the apple market at equilibrium.
(h) Bad harvest in parts of the world means that there is a fall in the supply of pears. What effect will this have on the market of apples? Explain with a diagram.
(i) What happens to the consumer surplus and producer surplus in the apple market due to bad harvest of pears?
plz answer f g h i both are asap
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