Essay
The quantity demanded for wireless computer mouses is Qd = 500 - 1.75P, and the quantity supplied is Qs = 450 + 0.25P.
a. Calculate the equilibrium price and quantity.
b. Is total surplus maximized at 440 mouses? Explain.
c. If the market price is currently $10, is there a shortage or surplus of mouses? How do you know?
d. If the market price is $40, is there a shortage or surplus of mouses? How do you know?
Correct Answer:
Verified
a. Qd = Qs.
500 – 1.75P = 450 + 0.25P
50 =...View Answer
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Correct Answer:
Verified
500 – 1.75P = 450 + 0.25P
50 =...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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