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Question 4 (13 points) Diamond Furnishing inc. is about to start selling a new import coffee table. It estimates the demand curve to be q
Question 4 (13 points) Diamond Furnishing inc. is about to start selling a new import coffee table. It estimates the demand curve to be q = D ( p) = 1, 000 200 2 p . The Willingness to order such a table is given by the supply curve q = S (p) = 1, 000 10 p 400 . (1) Determine the equilibrium point (g) (2 points) b) Determine the consumers' surplus at the equilibrium price (5 points) 0) Determine the producers' surplus at the equilibrium price (5 points) (1) Determine the resulting social gain (1 point)
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