The supply and demand for ice cream cones are described by the following equations: Supply: Q S

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The supply and demand for ice cream cones are described by the following equations:

Supply: Q^S = – 30 + 38P

Demand: Q^D = 90 – 2P

Q is the quantity of ice cream cones per day, and P is the price per cone (in dollars).

a. Graph the supply curve and the demand curve. What is the equilibrium price and quantity?

b. Calculate consumer surplus, producer surplus, and total surplus at the equilibrium.

c. If a dictator who hated ice cream were to outlaw the sale of ice cream cones, who would bear the larger burden-the buyers or the sellers of ice cream cones?

Related Book For answer-question

Core Macroeconomics

ISBN: 978-1464191435

3rd edition

Authors: Eric Chiang

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Posted Date: Dec 05, 2020 04:47 PM

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The supply and demand for ice cream cones are described by the following equations: Supply: Q S

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Core Macroeconomics

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