Question
Suppose that the market for a children's book is given by the following demand and supply functions: Demand: QD= 70 - 2P Supply: QS= -10
Suppose that the market for a children's book is given by the following demand and supply functions:
Demand:QD= 70 - 2P
Supply:QS= -10 + 2P
Where: QDand QSarequantity demand andquantity supplied respectively, and P is the price.
Now suppose that, in an attempt to support the book publisher, a minimum price per book (price floor) is set at $25. With the price floor in place, the new consumer surplus is equal to $ ____________
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Business A Changing World
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell
10th edition
1259179397, 978-1259179396
