Question

Consider a market where demand is equal to D = P= 30 - 2Q, and supply is equal to S= P=5+ .05Q,... D = demand, S = supply, P = price, and Q = quantity. Calculate the following values for this market: Equilibrium price Equilibrium quantity Consumer surplus Producer surplus

Answer 1

Date Ans. L Griven De pe 30 -20 s =P = 5 .050 ) - uis co Equilibrium Price This is attained by equating and supply that is Demand equating ددان علت → 30.2d = 54.050 → 25 .250 - d = 100 Putting this I in any equation we get equilibrium price P = 30 - 200 P = 30 - .2(100) p = 30 - 20 P =10 Equilibrium Quantity=100 ap=50- A Demand = Paso consumer Surplus supply t E A r. 57.05 Producer Surplus Quanthe ___ 10 20 40 60 80 100 120 140 160 180 200 22ů 240 260 scated with Page 6 CamScanner

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