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Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648 Exercise 6
Consider the market represented in Figure 5P-5.
a. Draw the consumer surplus and producer surplus if the market is functioning at the equilibrium price and quantity. Compute the total surplus if the market is functioning at the equilibrium price and quantity.
b. Compute the consumer surplus and producer surplus if the price is $30.
c. Compute the consumer surplus and producer surplus if the price is $10.
a. Draw the consumer surplus and producer surplus if the market is functioning at the equilibrium price and quantity. Compute the total surplus if the market is functioning at the equilibrium price and quantity.
b. Compute the consumer surplus and producer surplus if the price is $30.
c. Compute the consumer surplus and producer surplus if the price is $10.
Explanation
Verified
Verified
Consumer surplus:
Consumer surplus refe...
Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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