Consider a market in which demand and supply functions are given as Qd = 300-20P Qs =, 20P-100 Calculate the 1 equilibrium price and quantity 2 a price ceiling of rs5 is imposed how does it affect quantity demanded and quantity supplied. Use diagram 3 Distinguish between consumers surplus and producers surplus. With the help of diagram.show how the consumers surplus is determined. (10)

Consider a market in which demand and supply functions are given as Qd = 300-20P Qs =, 20P-100 Calculate the 1 equilibrium price and quantity 2 a price ceiling of rs5 is imposed how does it affect quantity demanded and quantity supplied. Use diagram 3 Distinguish between consumers surplus and producers surplus. With the help of diagram.show how the consumers surplus is determined. (10)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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