0 10 20 30 40 50 60 70 80 90 100 Quantity 3. Answer the following...

Question

Question

Answer 1

Answer #1

Solution:

3. a. At the equilibrium price of $10, John would be willing to purchase 50 ribs.

b. John is willing to pay $16 for 20 ribs. This can be seen from demand curve given.

c. John's consumer surplus at equilibrium price = 1/2 (20-10)(50-0) = $250

d.At equilibrium price of $10, Judi would be willing to sell 50 ribs. At equilibrium, quantity demanded = quantity supplied.

Answer 2

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