Question
Go back to the original demand and supply equations from the previous problem (=92.8212.75 and =5699.68). a. Draw the supply and demand diagram and show
Go back to the original demand and supply equations from the previous problem (=92.8212.75 and =5699.68). a. Draw the supply and demand diagram and show the equilibrium price, equilibrium quantity, consumer surplus, and producer surplus. Also, indicate the vertical intercepts of both demand and supply. (The vertical intercept of demand is the price at which the quantity demanded equals 0. The vertical intercept of supply is the price at which quantity supplied equals 0.) b.How big are consumer and producer surpluses? (I'm looking for actual numbers here. The graph you just drew will probably be useful for guiding your calculations.) c.In your own words, explain what the numbers you just calculated mean. (In other words, what exactly do consumer and producer surpluses tell us about a market?
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