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Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equil
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Answer #1

1. Market equilibrium occurs at the point where quantity demanded equals quantity supplied.

Consumers surplus is the area below the demand curve and above the market price. Producers surplus is the area below the market price and above the supply curve.

P = 450-60 / inverose Demand 1. Demand : QP = 450-P Supply : Q5 = 2P-150 > 2 P = Q3 + 150 P = 0.5 Q3 +75 inverse supply a) At

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