For a Given Commodity and Pure Competition, the Number of Units

question 41

Short Answer

For a given commodity and pure competition, the number of units produced and the price per unit are determined as the coordinates of the point of intersection of the supply and demand curves. Given the demand curve $p = 60 - \frac { x } { 20 }$ and the supply curve $p = 30 + \frac { x } { 30 } ,$ find the consumer surplus.

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Definitions:

Compounded Monthly

Interest on a deposit or loan is calculated each month and added to the principal, increasing the amount on which future interest is computed.

Mortgage Loan

A loan used to purchase a real estate property, secured by the property itself.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada.

Compounded Monthly

Describes the process where interest is calculated and added to the principal amount of an investment or loan on a monthly basis.