Suppose the demand curve for a product is given by MB = 100 - Q and the supply curve for a product is given by MC = 0.25Q, where Q is the quantity demanded/supplied in tons and MB and MC are, respectively, marginal benefit and marginal cost both expressed in US$. Use a graph to help answer the following questions and fill in your final answers in the spaces below. What is the equilibrium quantity? Q* = tons %3D What is the equilibrium price? P* = $ What is the consumer surplus at the equilibrium

Suppose the demand curve for a product is given by MB = 100 - Q and the supply curve for a product is given by MC = 0.25Q, where Q is the quantity demanded/supplied in tons and MB and MC are, respectively, marginal benefit and marginal cost both expressed in US$. Use a graph to help answer the following questions and fill in your final answers in the spaces below. What is the equilibrium quantity? Q* = tons %3D What is the equilibrium price? P* = $ What is the consumer surplus at the equilibrium

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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