Consider the following equations: SUPPLY: Q=10+2P DEMAND: Q=60-3P a) Compute the consumer's surplus at equilibrium. Show...
Consider the following equations:
SUPPLY: Q=10+2P
DEMAND: Q=60-3P
a) Compute the consumer's surplus at equilibrium. Show it on a graph.
Homework Answers
Setting QD=QS
60-3P=10+2P
60-10=2P+3P
50=5P
P=10
Q=10+2(10)=30
When QD=0,P=60/3=20
CS=0.5X30X(20-10) = 150
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