4. Suppose that the demand curve and supply functions are qp = 300-5p and qs = 100+20p, respectively. (a) On the same graph, draw the demand and supply curves with price on the vertical axis. (b) What is the quantity and price in the equilibrium? (c) Calculate consumer surplus and producer surplus.
4. Suppose that the demand curve and supply functions are qp = 300-5p and qs = 100+20p, respectively. (a) On the same graph, draw the demand and supply curves with price on the vertical axis. (b) What is the quantity and price in the equilibrium? (c) Calculate consumer surplus and producer surplus.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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