In a sunflower market, consumers have demand function for a sunflower given by P = -4Q+ 21 where P is the market price of sunflower and Qa is quantity of sunflower demanded. On the other hand, suppliers of sunflower have supply function given by P = 2Q, +3 where P is the market price of sunflower and Q is quantity of sunflower supplied. 10. Using demand and supply functions, calculate the market equilibrium price and quantity of sunflower. 11. Calculate for the consumer surplus, producer surplus, and total surplus at the market equilibrium (in values).
In a sunflower market, consumers have demand function for a sunflower given by P = -4Q+ 21 where P is the market price of sunflower and Qa is quantity of sunflower demanded. On the other hand, suppliers of sunflower have supply function given by P = 2Q, +3 where P is the market price of sunflower and Q is quantity of sunflower supplied. 10. Using demand and supply functions, calculate the market equilibrium price and quantity of sunflower. 11. Calculate for the consumer surplus, producer surplus, and total surplus at the market equilibrium (in values).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:In a sunflower market, consumers have demand
function for a sunflower given by P = -4Q+ 21
where P is the market price of sunflower and Qa is
quantity of sunflower demanded.
On the other hand, suppliers of sunflower have
supply function given by P = 2Q, +3
where P is the market price of sunflower and Q
is quantity of sunflower supplied.
10. Using demand and supply functions, calculate
the market equilibrium price and quantity of
sunflower.
11. Calculate for the consumer surplus, producer
surplus, and total surplus at the market
equilibrium (in values).
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