N3

22) For a supply function P = f(Qs) in fig above, If market equilibrium occurs at (Qo, Po) then the producers who would supply at a lower price than equilibrium price Po, benefit. The total gain to producers is called Producers' Surplus and is designated by the shaded area. Mathematically Producers' surplus = QoPo - 0 f(Qd)dQ You are given the supply function P = (Q + 8)2 where the equilibrium price in the market P0 = K500. What will the Equilibrium quantity be? A) Q = -2 B) Q = -18 C) Q = -4 D) Q = 18 E) None of the above 23) In reference to the supply function P = (Q + 8)2 , the Total Revenue in the market will be: A) TR = -K6400 B) TR = -K6400 C) TR = K9000 D) TR = K3840 E) None of the above