Suppose the market for cheeseburgers is perfectly competitive, and the demand function for cheeseburgers is given by
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Suppose the market for cheeseburgers is perfectly competitive, and the demand function for cheeseburgers is given by Qd = 100 - 2P, where Qd is the quantity of cheeseburgers demanded and P is the price of cheeseburgers. The market is initially in equilibrium with a price of $30 per cheeseburger and a total quantity of 35 cheeseburgers produced and sold. However, due to an increase in the cost of beef, the cost of producing each cheeseburger increases by $5. Calculate the new equilibrium price and quantity of cheeseburgers, and determine the change in consumer surplus, producer surplus, and total surplus as a result of the increase in the cost of beef.
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