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Y6 Suppose supply and demand for donuts are given by: Qd = A2P and Qs = P (A=6.5) (B=2.6) Solve for the equilibrium price and

Y6

Suppose supply and demand for donuts are given by: Qd = A2P and Qs = P (A=6.5) (B=2.6)

Solve for the equilibrium price and quantity of donuts then rewrite the demand curve as the inverse demand curve, that is P = .... and plot this along with the supply curve. Indicate the equilibrium price and quantity, as well as the areas which represent consumer and producer surplus and finally calculate the amount of producer and consumer surplus in this equilibrium.

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