The supply and demand for broccoli are described by the following equations:

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The supply and demand for broccoli are described by the following equations:

Q^s=4P-80

Q^d=100-2P

where Q is the quantity of broccoli and P is its price.

(a) Graph the supply curve and the demand curve.

(b) What is equilibrium price and quantity?

(c) Calculate consumer surplus, producer surplus, and total surplus at the equilibrium. Indicate consumer surplus and producer surplus on your diagram.

(d) Suppose a dictator who hated broccoli was to tax the sellers of the vegetable. Explain what determines who bears the largest burden - the buyers or the sellers of broccoli?

business economics

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