Price 50 Supply 40 30 20 10 Demand 100 200 300 400 500 Quantity 1. Wh is the equilibrium price and quantity in this market? 2. Calculate the producer and consumer surplus in this market. 3. If consumer income increased and this is a normal good, what will happen to the equilibrium price and quantity? (explain generally not specific numbers).

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter4: Prices: Free, Controlled, And Relative
Section: Chapter Questions
Problem 2WNG
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Consider the market for wireless headphones using the graph below.
Price
50
Supply
40
30
20
10
Demand
100
200
300
400
500
Quantity
1. Wh is the equilibrium price and quantity in this market?
2. Calculate the producer and consumer surplus in this market.
3. If consumer income increased and this is a normal good, what will happen to the equilibrium
price and quantity? (explain generally not specific numbers).
Transcribed Image Text:Consider the market for wireless headphones using the graph below. Price 50 Supply 40 30 20 10 Demand 100 200 300 400 500 Quantity 1. Wh is the equilibrium price and quantity in this market? 2. Calculate the producer and consumer surplus in this market. 3. If consumer income increased and this is a normal good, what will happen to the equilibrium price and quantity? (explain generally not specific numbers).
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