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Consider the Market for a Procter and Gamble Biodegradable Detergent

question 36

Essay

Consider the market for a Procter and Gamble biodegradable detergent. Suppose that market demand is QD = 120 - 3P, and market supply is QS = -50 + 2P, where P is the price per case and Q is the quantity in thousands per week.
a. Find equilibrium quantity and price.
b. What is the value of consumer surplus (CS) and producer surplus (PS) at equilibrium?
c. If each case of detergent were sold at $30, determine the amount of the shortage or surplus that would result.


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Human Immunodeficiency Virus, a virus that attacks the immune system and, if not treated, can lead to AIDS (Acquired Immunodeficiency Syndrome).

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A form of genetic transfer where two bacteria temporarily join together and directly transfer genetic material between them.

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A thin, tube-like structure used by bacteria to transfer genetic material during a form of reproduction called conjugation.

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The process by which sensory stimuli are converted into electrical signals in the nervous system.

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