year 1 Econ

01. Suppose the following is the market condition for the market of cupcake. Qd =1,200 60P, where Qd is the quantity demanded (in number of cupcake) and P is the price (in dollar term). Qs = 200 + 4GP, where Qs is the quantity supplied (in number of cupcake). b) Draw the demandand-supply diagram of the cupcake market and label all relevant figures and intercepts. Calculate the consumer surplus, the producer surplus and total surplus for the market of cupcake. Show your workings. (You are reminded that a well-labelled diagram needs not be drawn in scale.) E lZI |I|