Assume a perfectly competitive market where assumption BIG holds. The demand curve is MWTP=35 – (4/10)xQ. The supply curve is MC=6 + (4/10)xQ. In equilibrium, what is total surplus? Round to two decimal places, and do not include the currency symbol. If your answer is -1.275, enter –1.28.

Assume a perfectly competitive market where assumption BIG holds. The demand curve is MWTP=35 – (4/10)xQ. The supply curve is MC=6 + (4/10)xQ. In equilibrium, what is total surplus? Round to two decimal places, and do not include the currency symbol. If your answer is -1.275, enter –1.28.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 8CQ

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Assume a perfectly competitive market where assumption BIG holds. The demand
curve is MWTP=35 - (4/10)xQ. The supply curve is MC=6 + (4/10)xQ. In equilibrium,
what is total surplus?
Round to two decimal places, and do not include the currency symbol. If your answer
is -1.275, enter -1.28.
Correct Answer
525.63 margin of error +/- 0.01

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