csps3 - Calculate the consumer surplus and producer surplus...

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Additional Problem #3 : Consumer and Producer Surplus Now consider the market for pizza. Suppose that the market demand for pizza is given by the equation P = 40 – 4Q D , and the market supply for pizza is given by the equation P = 10 + 2Q S , where Q D = quantity demanded, Q S = quantity supplied, P = price consumers pay (per pizza) and the price producers receive (per pizza). Graph the supply and demand schedules for pizza and indicate the equilibrium price and quantity. (Your answer must contain your complete algebraic solution).
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Unformatted text preview: Calculate the consumer surplus and producer surplus and identify these areas in the graph below.(Be sure to label the axes and functions, and number your intercepts.) Equilibrium Price: Equilibrium Quantity: (Show your complete algebraic solution for the equilibrium price and quantity in the space below.) Consumer Surplus at Equilibrium: (Show all work.) Producer Surplus at Equilibrium: (Show all work.)...
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