Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 3.A, Problem 9SQ

Producer surplus measures the value between the actual selling price and the

  1. a. price sellers are willing to sell the product.
  2. b. deadweight loss price.
  3. c. lowest price sellers are willing to sell the product.
  4. d. profit-maximization price.
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Consider the following demand and supply functions:Qd= 10-PQs=1+2pFind the equilibrium price and quantity, Producers and Consumer surpluses.Consider the tax size 3. What would be new CS and PS, TS and DL? (hint – it would be easierif you draw them)
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