EBF QUIZ 1
A radio station gives "free money" to those listeners whose names are drawn and announced over the
airwaves from postcards the listeners sent into the radio station. Is the money really free for the
There are minor cash costs with
Lesson 4 example problem
Demand is given by: P = 100 2Q
Supply is given by: P = 10 + Q
What is the equilibrium, the consumer surplus and the producer surplus?
Given the data from Question 1, how much wealth will a consumer make if his willingness to
The demand curve is given as: P = 12 - Q
The supply curve is given as: P = 2 + Q.
1. What is the profit-maximizing equilibrium?
2. What is the dead-weight loss?
(Qm, Pm) = (3.33, 8.67), Deadweight loss = 2.78