The weekly supply and demand for cupcakes in a small town are given as QS = 30P- 20 and Q 124 - 18P, where P is the price of a cupcake and Q is measured in thousands per week. %3! %3D a. Find the equilibrjum price and quantity. b. Calculate the cornsumer and producer surplus at the equilibrium price.

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Chapter7: Market Efficiency And Welfare
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The weekly supply and demand for cupcakes in a small town are given as OS = 30P- 20
and Q = 124 - 18P, where P is the price of a cupcake and Q is measured in thousands per
%3D
week.
a. Find the equilibrjum price and quantity.
b. Calculate the corsumer and producer surplus at the equilibrium price.
Transcribed Image Text:The weekly supply and demand for cupcakes in a small town are given as OS = 30P- 20 and Q = 124 - 18P, where P is the price of a cupcake and Q is measured in thousands per %3D week. a. Find the equilibrjum price and quantity. b. Calculate the corsumer and producer surplus at the equilibrium price.
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