Assume that demand in the market for consoles is QD = 1000 - P and supply is QS = 2P - 200. a) In equilibrium, what will be the price of a consoles? How many units will sell at this price? b) What is the value of consumer surplus at equilibrium? c) What is the value of producer surplus at equilibrium?
Assume that demand in the market for consoles is QD = 1000 - P and supply is QS = 2P - 200. a) In equilibrium, what will be the price of a consoles? How many units will sell at this price? b) What is the value of consumer surplus at equilibrium? c) What is the value of producer surplus at equilibrium?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Assume that demand in the market for
consoles is QD = 1000 - P and supply is QS =
2P - 200.
a) In equilibrium, what will be the price of a
consoles? How many units will sell at this
price?
b) What is the value of consumer surplus at
equilibrium?
c) What is the value of producer surplus at
equilibrium?
d) Suppose that the government imposed a
$300 price ceiling on consoles. How many
units are sold?
e) What is consumer surplus now? What is
producer surplus? What is the "deadweight
İoss" from this policy?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a5aec56-21fc-4f7c-b9d5-c48a379fd85c%2Fa55d3c77-e93c-411f-b398-94b9a1c0925d%2Fbgk1rgq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that demand in the market for
consoles is QD = 1000 - P and supply is QS =
2P - 200.
a) In equilibrium, what will be the price of a
consoles? How many units will sell at this
price?
b) What is the value of consumer surplus at
equilibrium?
c) What is the value of producer surplus at
equilibrium?
d) Suppose that the government imposed a
$300 price ceiling on consoles. How many
units are sold?
e) What is consumer surplus now? What is
producer surplus? What is the "deadweight
İoss" from this policy?
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