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Hello, can you please help me with this micro question. Thank you and much appreciated! Market Curves. Consider a market with two consumers and two
Hello, can you please help me with this micro question. Thank you and much appreciated!
Market Curves. Consider a market with two consumers and two firms. Assume this market is perfectly competitive. Suppose Consumer 1 has a direct demand function of q1 (P) = 436 - 0.5P and Consumer 2 has a direct demand of q2(P) = 1744 - 2.0P. Suppose Firm A has a direct supply function given as qA(P) = 0.50P and Firm B has a direct supply function given as qB(P) = 2.00P. Determine the market supply and demand functions using the individual functions above. How much producer surplus is generated in the market equilibrium? The market equilibrium will generate a producer surplus of $:|. (Enter your answer rounded to two decimal places.)Step by Step Solution
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