Consider a competitive market. Suppose market demand is given by Q = 25 - 1⁄2p and market supply is given by Q = -20 +4p for p(greater than or equal to) 5.

a. Determine the equilibrium price and quantity.

b. Determine the value of consumer surplus given the above demand and supply curves.

c. Determine the value of producer surplus given the above demand and supply curves.

d. Determine the value of the deadweight loss if there was one fewer units of output consumed and produced than the

equilibrium quantity.

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