Question
*please show my steps and details on graph to understand. question Suppose market demand and supply are given by Q d = 100 2P and
*please show my steps and details on graph to understand.
question
Suppose market demand and supply are given by Qd= 100 2P and Qs= 5 + 3P.
(a) What is the equilibrium price and the equilibrium quantity? Please show your calculations.
(b) What is the consumer surplus at the equilibrium price? Please show your calculations.
(c) What is the producer surplus at the equilibrium price? Please show your calculations.
(d) If the government set a price ceiling at $10 what would be the excess demand or excess
supply at this price ceiling? Please show your calculations.
(e) What is the consumer surplus and the producer surplus at the price ceiling? Please show your
calculations.
Calculating the consumer surplus and the producer surplus will require you to rewrite the demand and the supply curves in the form P = a - bQ and P = c + dQ
.
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