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You Are Given the Following Market Data for Venus Automobiles

question 92

Essay

You are given the following market data for Venus automobiles in Saturnia.
Demand: P = 35,000 - 0.5Q
Supply: P = 8,000 + 0.25Q
where P = Price and Q = Quantity.
a.Calculate the equilibrium price and quantity.
b.Calculate the consumer surplus in this market.
c.Calculate the producer surplus in this market.


Definitions:

Exact Simple Interest

Interest calculated linearly on the principal amount, where the calculation is based precisely on the time period involved.

365-Day Year

A method of calculating interest that assumes all years have 365 days, used in some financial contexts.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or deposit, based solely on the principal, rate, and time.

360-Day Year

A method used in accounting and finance that assumes a year has 360 days to simplify interest calculations.

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