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Suppose the Demand and Supply Curves for Shampoo Are Given

Question 4

Multiple Choice

Suppose the demand and supply curves for shampoo are given by
QD = 18 - 5P
QS = -3 + 2P
Where QD is the quantity of shampoo demanded (in thousands of bottles) , QS is the quantity supplied, and P is the price of shampoo (in dollars per bottle) . The consumer surplus at the equilibrium price is ____.


A) $9
B) $900
C) $450
D) $4.50

Correct Answer:

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