(b) Find the consumer surplus and producer surplus.consumer surplus$producer surplus%24%24 Consider the following.Supplyp = 70 + 0.00001xDemandp = 130 – 0.00005x(a) Graph the systems of inequalities representing the consumer surplus and producer surplus for the supply and demand equations.

Equilibrium is achieved at the output level where Qs=Qd

Answered: Demand Supply p = 70 + 0.00001x p = 130…

Demand Supply p = 70 + 0.00001x p = 130 – 0.00005x (a) Graph the systems of inequalities representing the consumer surplus and producer surplus for the supply and demand equati

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Concept explainers

Total Surplus and Deadweight Loss

Economists generally define efficiency as when it is impossible to improve the situation of one party without imposing a cost on another. Conversely, if a situation gets inefficient, a party will benefit more than the other without imposing costs on others.

Question

(b) Find the consumer surplus and producer surplus.
consumer surplus
$
producer surplus
%24
%24

Consider the following.
Supply
p = 70 + 0.00001x
Demand
p = 130 – 0.00005x
(a) Graph the systems of inequalities representing the consumer surplus and producer surplus for the supply and demand equations.

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