Consider a Market Characterized by the Following Inverse Demand and Supply

Multiple Choice

Consider a market characterized by the following inverse demand and supply functions: P_X = 40 − 4Q_X and P_X = 10 + 2Q_X.Compute the surplus received by consumers and producers.

A) $25 and $25, respectively
B) $20 and $40, respectively
C) $40 and $20, respectively
D) $50 and $25, respectively