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Suppose that the demand D(q) and the supply S(q) for a product are given by D(q) = 400 - 0.6q and S(q) = 0.2q, where
Suppose that the demand D(q) and the supply S(q) for a product are given by D(q) = 400 - 0.6q and S(q) = 0.2q, where q is number of items and D(q) and S(q) are price in dollars. a. Find the equilibrium quantity. Answer: items b. Find the consumer surplus at the equilibrium quantity. Answer: dollars c. Find the producer surplus at the equilibrium quantity. Answer: dollars
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