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The municipality is planning to build a huge monument, buying marble from the domestic market, which is efficient. An independent study has previously estimated the local demand and supply of marble as ??=25−0.2? and ??=−5+?, respectively. If the demand due to this project is expected to change to ??=49−0.2? (the quantity is measured in square meters and the price in dollars): What is the value of the change in the total surplus caused by this project?

The municipality is planning to build a huge monument, buying marble from the domestic market, which is efficient. An independent study has previously estimated the local demand and supply of marble as ??=25−0.2? and ??=−5+?, respectively. If the demand due to this project is expected to change to ??=49−0.2? (the quantity is measured in square meters and the price in dollars): What is the value of the change in the total surplus caused by this project?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The municipality is planning to build a huge monument, buying marble from the domestic market, which is efficient. An independent study has previously estimated the local demand and supply of marble as ??=25−0.2? and ??=−5+?, respectively. If the demand due to this project is expected to change to ??=49−0.2? (the quantity is measured in square meters and the price in dollars):

What is the value of the change in the total surplus caused by this project?

P 150- 125 Demand Curve 100 -75 Supply curve 50 25 -5 5 10 15 20 25 30 35 40 45 50 55
Transcribed Image Text:P 150- 125 Demand Curve 100 -75 Supply curve 50 25 -5 5 10 15 20 25 30 35 40 45 50 55
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