Suppose the Demand and Supply Curves for Units of University

question 85

Essay

Suppose the demand and supply curves for units of university credits are given by the following equations:
Q^D = 5,000 - P
Q^S = -1,000 + 4P
where Q^D is the quantity of credits demanded, Q^S is the quantity supplied, and P is the price in dollars for each unit.
a. Calculate the equilibrium price and quantity.
b. Calculate the consumer surplus at the equilibrium price.

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