Question 2: There is an increase in the demand of product A, now consumers are buying 20 more units at any given price. (30%) I. II. III. IV. Find the new market equilibrium. What is the change in consumer surplus? What is the change in producer surplus? Graphically show the change in CS.

Question 2: There is an increase in the demand of product A, now consumers are buying 20 more units at any given price. (30%) I. II. III. IV. Find the new market equilibrium. What is the change in consumer surplus? What is the change in producer surplus? Graphically show the change in CS.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Based on market of product A, with demand function as Q = 300-2P, and the supply given as Q = 2P-60

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