Calculate the producer surplus and consumer surplus in the equilibrium and illustrate them in a graph.
The lumber market in Australia Suppose the demand and the supply for lumber used for construction in Australia are given by QD =100 – 2P QS = 1 2P Assume also that the market is perfectly competitive. 2.1. Compute the equilibrium price P* and quantity Q *. 2.2. Plot on a graph: the demand curve, […]