Market Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWL Based on the following functions, compute for the: Demand: P = 1200 – 4Q Supply :  P = 655 + 2Q Draw the graph for items (2-3)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 6E
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Market Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWL
Based on the following functions, compute for the:
Demand: P = 1200 – 4Q
Supply :  P = 655 + 2Q

  1. Draw the graph for items (2-3)
  2. Determine the amount of CS (Red)
  3. Determine the amount of PS (Blue)
  4. What is the Total Benefit?
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