Question: 2 . 3 Economists estimate that the supply function for the widget market is given by the following expression: q = 0 . 2

2.3 Economists estimate that the supply function for the widget market is given by
the following expression:
q =0.2\pi 40
a. Calculate the demand and price at the market equilibrium if the demand is
as defined in Problem 2.2.
b. For this equilibrium, calculate the consumers gross surplus, the consumers net
surplus, the producers revenue, the producers profit and the global welfare.

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