The annual demand for full-spectrum LED light bulbs in Fairbanks, Alaska, is estimated to be Qb =

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The annual demand for full-spectrum LED light bulbs in Fairbanks, Alaska, is estimated to be Qb = 20,000 -1,000P. The supply is estimated to be Qs = -12,000 + 3,000P.

a. Find the equilibrium price and quantity of LED light bulbs in Fairbanks, Alaska.

b. Calculate the consumer and producer surplus at the equilibrium price.

c. What is the total surplus created in the market for LED light bulbs?

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Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Feb 21, 2020 07:37 AM

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The annual demand for full-spectrum LED light bulbs in Fairbanks, Alaska, is estimated to be Qb =

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Step by Step Answer:

a Q D Q s implies 20000 1000P 12000 3000P This simplifies to 32000 4000P or P 8 Substitute this valu...View the full answer

Microeconomics

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