If demand is given by qd = 20 – P and supply is given by qs = P, then producer surplus is: a. 50 b. 100 c. 30 d. 20
Question
Solution 1
First, we need to find the equilibrium price and quantity. This is where quantity demanded (qd) equals quantity supplied (qs).
Setting qd = qs, we get:
20 - P = P
Solving for P, we get:
P = 20/2 = 10
Substituting P = 10 into the supply equation, we get:
qs = 10
Now, we can calculate the prod Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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