Find the cquilibrium price and quantity, the consumer surplus, producer surplus, and total surplus in the market represented by the following equations Pd=10-2Qd Ps=2+2Qs
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3) Find the cquilibrium
Pd=10-2Qd
Ps=2+2Qs
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- When a market is in equilibrium, the total amount of consumer surplus must be--------- the total amount of producer surplus. 1)equal to 2)larger than 3)less than 4)none of theseQuestion 10 Consumer surplus for a particular unit sold is equal to which of the following? Question 10 options: a) The vertical distance between price and the demand curve. b) The vertical distance between the demand curve and the supply curve. c) The vertical distance between price and the supply curve. d) The vertical distance between the demand curve and the x-axis. e) The vertical distance between the supply curve and the x-axis. Question 11 In a graph, market producer surplus is equal to what area? Question 11 options: a) The area below the demand curve but above price. b) The area between the demand and supply curves. c) The area below the demand curve but above the x-axis.…Explain the origin of both consumer surplus and producer surplus and explain how properly functioning markets maximize their sum, total surplus, while optimally allocating resources.
- There are six potential consumers of computer games, each willing to buy only one game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing to pay $25, consumer 5 is willing to pay $20, and consumer 6 is willing to pay $15. Suppose the market price is $29. What is the total consumer surplus? The market price decreases to $19. What is the total consumer surplus now? When the price falls from $29 to $19, how much does each consumer’s individual consumer surplus change? How does total consumer surplus change?Use definite integrals to solve for the consumer surplus, producer surplus and total surplus, giventhe following deman: P= -Q^2 - 8Q + 70 supply: P = Q^2 - 2Q + 14D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x)=(x−9)^2, S(x)=x^2+6x+57
- Find the consumer surplus, producer surplus and total surplus, given the following: Demand: ? = −?^2 − 8? + 70Supply: ? = ?^2 − 2? + 14Illustrate and explain what is meant by consumer surplus and producer surplus at market equilibrium..Determine whether the following statements is true or false, and explain why. The consumers’ surplus and the producers’ surplus equal each other.