Question: Suppose a market for Americano coffee within the 500 m. radius of University of Toronto Central Office in Ontario. Assume, that the market has the

Suppose a market for Americano coffee within the 500 m. radius of University of Toronto Central Office in Ontario. Assume, that the market has the following supply and demand functions:

Qs = 500P-500

Qd = 10000-1000P

a. Calculate the equilibrium price and the equilibrium quantity of the market for Americano coffee.

b. What is the consumer surplus? And producer surplus?

c. What is the total surplus?

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