Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places. a. What is consumer surplus at the competitive market equilibrium? b. What is producer surplus at the competitive market equilibrium? c. What is aggregate surplus at this equilibrium?

Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places. a. What is consumer surplus at the competitive market equilibrium? b. What is producer surplus at the competitive market equilibrium? c. What is aggregate surplus at this equilibrium?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 10E

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Question

The market demand function for corn is
Qd = 19 - 5P
The market supply function is
QS = 5P - 4
both quantities measured in billions of bushels per year.
Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places.
a. What is consumer surplus at the competitive market equilibrium?
b. What is producer surplus at the competitive market equilibrium?
c. What is aggregate surplus at this equilibrium?

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