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In: Economics

13-4) Demand is given by QD = 800 - 3P, and supply is given by QS...

13-4) Demand is given by QD = 800 - 3P, and supply is given by QS = -400 + 7P.

            A) Find the equilibrium price and quantity.        (5 points)                    

           

            B) Compute the price elasticity of demand and the price elasticity of supply at the equilibrium. (6 points)

            C) In a diagram, show the consumer and producer surplus at the equilibrium. Explain these surpluses. (6 points)

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