Suppose that the price-demand and the price-supply equations are given respectively by the following: p= D(x) = 40 - 0.2x, P = S(x) = 27.5 +0.001x² (a) Determine the equilibrium price p and the equilibrium quantity . (b) Calculate the total savings to buyers who are willing to pay more thar the equilibrium price p. (c) Calculate the total gain to sellers who are willing to supply units less than the equilibrium price p.

Suppose that the price-demand and the price-supply equations are given respectively by the following: p= D(x) = 40 - 0.2x, P = S(x) = 27.5 +0.001x² (a) Determine the equilibrium price p and the equilibrium quantity . (b) Calculate the total savings to buyers who are willing to pay more thar the equilibrium price p. (c) Calculate the total gain to sellers who are willing to supply units less than the equilibrium price p.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 8WNG

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