Demand Is Represented by the Equation, P = 20 -

question 35

Essay

Demand is represented by the equation, P = 20 - 0.2QD and supply by the equation P = 5 + 0.1QS.(a) Suppose this market produces 40 units of output.What price would this output be sold at? What is the marginal benefit to society of the 40th unit? What is the marginal cost of the 40th unit?
(b) What is consumer surplus if the market produces 40 units of output? What is producer surplus? What is the sum of consumer and producer surplus?
(c) What are the equilibrium price and quantity?
(d) What is consumer surplus at equilibrium? What is producer surplus? What is the sum of consumer and producer surplus?
(e) Is allocative efficiency achieved when the market produces 40 units of output? Explain in three different ways.

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Wilderness

Natural, undeveloped land areas remaining untouched by significant human activities, often valued for their ecological purity and beauty.

English Colonization

The process of establishing settlements and asserting control over regions by the English, particularly in America, during the 16th to 19th centuries.

Spanish Colonization

The period in history when Spain expanded its territory across large areas of the Americas, the Pacific, and parts of Asia, beginning in the late 15th century.

Racial Formation

The sociohistorical process by which racial categories are created, inhabited, transformed, and destroyed.