The market demand for laptops is P=32-2Q and the market supply is P=8+2Q. What is consumer...

Question

Question

The market demand for laptops is P=32-2Q and the market supply is P=8+2Q. What is consumer surplus at the market equilibrium?

a.12

b.24

c.36

d.72

Answer 1

Answer #1

Set QD=QS

32-2Q=8+2Q

32-8+2Q+2Q

24=4Q

Q = 24/4 = 6

P = 32-2*6 = 20

Maximum reservation price = 32

CS = 0.5*6*(32-20) = 3*12 = 36

option(C)

Answer 2

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