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Consumer and Producer Surplus; Price Ceilings and Price Floors

1

Quantitative Analysis of Consumer and Producer Surplus

17m

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2

Problem

The supply and demand curves for a product are as follows. What is consumer surplus in this market?

Q_{D} = 45 – 2P

Q_{S} = -15 + P

A

6.25

B

12.5

C

20

D

22.5

E

25

3

Problem

The supply and demand curves for a product are as follows. What is producer surplus in this market?

Q_{D} = 45 – 2P

Q_{S} = -15 + P

A

6.25

B

12.5

C

15

D

20

E

25