Suppose the Demand and Supply Curves for Units of University

question 64

Essay

Suppose the demand and supply curves for units of university credits are given by
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.