The management of an electrical store has determined that the market for vacuum cleaners can be described by the following supply and demand curves. Demand: p =-0.4q + 23, Supply: p= 0.03g? +3 where p is measured in dollars and q is measured in units of a hundred. Determine the consumers' surplus and the producers' surplus if the market price is set at the equilibrium price. (i) At what quantity and price is the market for the commodity in equilibrium? (i1) Find the consumer surplus and the producer surplus when the market is in equilibrium.

The management of an electrical store has determined that the market for vacuum cleaners can be described by the following supply and demand curves. Demand: p =-0.4q + 23, Supply: p= 0.03g? +3 where p is measured in dollars and q is measured in units of a hundred. Determine the consumers' surplus and the producers' surplus if the market price is set at the equilibrium price. (i) At what quantity and price is the market for the commodity in equilibrium? (i1) Find the consumer surplus and the producer surplus when the market is in equilibrium.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6CQQ

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