Market demand for Mandrake roots is given by 261-2P and market supply is given by Q = 4P. The government imposes a price ceiling of $23. What is the consumer surplus in the market with the price ceiling?

Market demand for Mandrake roots is given by 261-2P and market supply is given by Q = 4P. The government imposes a price ceiling of $23. What is the consumer surplus in the market with the price ceiling?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section3.3: The Market: Putting Supply And Demand Together

Problem 5ST

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Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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