If the equilibrium quantity is 20 and the equilibrium price is 25, and the maximum someone is
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Question:
If the equilibrium quantity is 20 and the equilibrium price is 25, and the maximum someone is willing to pay is 60 and the supply curve intersects the y axis at zero:
A.Draw the graph of supply and demand using the information above.
B.Calculate the consumer surplus using the formula for the area of a triangle: Base x Height
C.Calculate the producer surplus using the formula for the area of a triangle: Base x Height
D.What is the total surplus?
E.If this market is perfect competition, is it efficient?
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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