Question
Suppose demand is given by the equation Qd=8+2M-1/2P. Plugging M=6 into the demand equation, we get Qd=20-1/2P. Supplies is Qs=-4+P. Inverse demand and supply is
Suppose demand is given by the equation Qd=8+2M-1/2P. Plugging M=6 into the demand equation, we get Qd=20-1/2P. Supplies is Qs=-4+P. Inverse demand and supply is P=40-2Qd and P=4+Qs. Find the price and quantity at the equilibrium and calculate the consumer surplus, producer surplus and total surplus.
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The Great Convergence Information Technology And The New Globalization
Authors: Richard Baldwin
1st Edition
067466048X, 9780674660489
