Question 2: There is an increase in the demand of product A, now consumers are buying 20 more units at any given price. (30%) I. II. III. IV. Find the new market equilibrium. What is the change in consumer surplus? What is the change in producer surplus? Graphically show the change in CS.

Question 2: There is an increase in the demand of product A, now consumers are buying 20 more units at any given price. (30%) I. II. III. IV. Find the new market equilibrium. What is the change in consumer surplus? What is the change in producer surplus? Graphically show the change in CS.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency

Problem 16SQ

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Based on market of product A, with demand function as Q = 300-2P, and the supply given as Q = 2P-60

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