Consider the demand curve for hair cuts is given by Q=100−2P and the market equilibrium price equals $10. If, due to a shortage of hairdressers, the equilibrium price increases to $20, what would be the change in the consumer surplus at the new price?
Consider the demand curve for hair cuts is given by Q=100−2P and the market equilibrium price equals $10. If, due to a shortage of hairdressers, the equilibrium price increases to $20, what would be the change in the consumer surplus at the new price?
Chapter7: Market Efficiency And Welfare
Section: Chapter Questions
Problem 1P
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