The demand for rides during Coachella is given by QD=4000-10P. Suppose supply is given by Qs=15P. Many consumers want rides and many drivers are willing to supply rides, so we can treat the market for rides as a competitive market. If Uber sets the price at the competitive market price, the price is 160 v. Total surplus (consumer plus producer surplus) is If Uber instead sets the price at that assumes `regular' demand, QD=2000-5P, the deadweight loss is

The demand for rides during Coachella is given by QD=4000-10P. Suppose supply is given by Qs=15P. Many consumers want rides and many drivers are willing to supply rides, so we can treat the market for rides as a competitive market. If Uber sets the price at the competitive market price, the price is 160 v. Total surplus (consumer plus producer surplus) is If Uber instead sets the price at that assumes `regular' demand, QD=2000-5P, the deadweight loss is

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 12P

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