Question
If equilibrium quantity is 10 and equilibrium price is 8, and the maximum someone is willing to pay is 20: 1.Draw a graph showing which
If equilibrium quantity is 10 and equilibrium price is 8, and the maximum someone is willing to pay is 20:
1.Draw a graph showing which area is consumer surplus
2.Calculate the consumer surplus.
3.What is consumer surplus in your words?
4.Define producer surplus in your words?
5.How do you know if a market is efficient?
6.Describe how the invisible hand works:
7.If equilibrium quantity is 6 and equilibrium price is 8, and the maximum someone is willing to pay is 20:
You add a price floor of 10.Draw the graph and show where is the dead weight loss if any.
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