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Principles of Economics

3.2 Suppose the market demand for a cup of cappuccino is
given by QD = 24 – 4P and the market supply for a cup of
cappuccino is given by QS = 8P – 12, where P = price
(per cup).
a. Graph the supply and demand schedules for cappuccino.
b. What is the equilibrium price and equilibrium quantity?
c. Calculate consumer surplus and producer surplus, and
identify these on the graph

Microconomics   
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