Essay
Suppose that the market demand curve for residential water is:
QD = 10 - 2.25P
and the market supply curve is:
QS = -10 + 2.75P
where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons.
a. Calculate the equilibrium price and quantity.
b. Calculate the consumer surplus at the equilibrium price.
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a. First, solve for the equilibrium pric...View Answer
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Correct Answer:
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