Assume that aggregate demand for lobster dinners (in hundreds) in my neighborhood is given by P=60-5Q...

 

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Assume that aggregate demand for lobster dinners (in hundreds) in my neighborhood is given by P=60-5Q and that aggregate supply for lobster dinners (in hundreds) from area restaurants is given by P=10+5Q. (16 points) a. (2 points) Graph demand and supply. b. (2 points) Algebraically solve for the equilibrium price and quantity c. (4 points) Calculate consumer surplus and producer surplus and label them on your graph d. (4 points) Suppose 50 more people move into my neighborhood. What happens, qualitatively, to equilibrium price and quantity? e. (4 points) Are households better off? Are restaurants better off? Is society better off? Assume that aggregate demand for lobster dinners (in hundreds) in my neighborhood is given by P=60-5Q and that aggregate supply for lobster dinners (in hundreds) from area restaurants is given by P=10+5Q. (16 points) a. (2 points) Graph demand and supply. b. (2 points) Algebraically solve for the equilibrium price and quantity c. (4 points) Calculate consumer surplus and producer surplus and label them on your graph d. (4 points) Suppose 50 more people move into my neighborhood. What happens, qualitatively, to equilibrium price and quantity? e. (4 points) Are households better off? Are restaurants better off? Is society better off?