Consider a market with the following demand and supply = 500 - 2p, Qs = p + 50. At the market equilibrium, what is the consumer surplus (CS) and producer curves: QD - surplus (PS)? A. CS = 10000, PS = 0.

Consider a market with the following demand and supply = 500 - 2p, Qs = p + 50. At the market equilibrium, what is the consumer surplus (CS) and producer curves: QD - surplus (PS)? A. CS = 10000, PS = 0.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a market with the following demand and supply
-
curves: QD = 500 - 2p, Qs = p + 50. At the market
equilibrium, what is the consumer surplus (CS) and producer
surplus (PS)?
A. CS = 10000, PS = 0.
B. CS=0, PS = 10000.
C. CS = 5000, PS = 5000.
D. CS = 10000, PS = 10000.
E. None of the above.

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