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In: Economics

The market for a product has the following inverse demand and supply functions Pd = 120...

The market for a product has the following inverse demand and supply functions

Pd = 120 - Qd

Ps      = 0.5Qs.

1. Find the equilibrium price P* and quantity Q*. Show on a diagram

2. Find the consumer and producer surplus

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Expert Solution

Rahul Sunny answered 2 years ago
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