5. Suppose that the market supply and demand for a nitrogen fertilizer are respectively expressed as follows: Qs 4P; QD = 10-P where Qs, Qu, and P are the quantity supplied, the quantity demanded, and the price of the fertilizer respectively. a. Find the market clearing price and quantity P* and Q*. (2 points) Qs=Qd 4P=10-P 5P-10 P=2 Qs=8 Qd=8 b. Draw to scale the demand and supply schedules and show on your graph the area representing the consumer surplus and the producer surplus. (4 points)
5. Suppose that the market supply and demand for a nitrogen fertilizer are respectively expressed as follows: Qs 4P; QD = 10-P where Qs, Qu, and P are the quantity supplied, the quantity demanded, and the price of the fertilizer respectively. a. Find the market clearing price and quantity P* and Q*. (2 points) Qs=Qd 4P=10-P 5P-10 P=2 Qs=8 Qd=8 b. Draw to scale the demand and supply schedules and show on your graph the area representing the consumer surplus and the producer surplus. (4 points)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 23QP
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Transcribed Image Text:5. Suppose that the market supply and demand for a nitrogen fertilizer are respectively
expressed as follows:
Qs 4P; QD = 10-P where Qs, Qu, and P are the quantity supplied, the quantity
demanded, and the price of the fertilizer respectively.
a. Find the market clearing price and quantity P* and Q*. (2 points)
Qs=Qd 4P=10-P 5P-10 P=2
Qs=8 Qd=8
b. Draw to scale the demand and supply schedules and show on your graph the area
representing the consumer surplus and the producer surplus. (4 points)
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