In: Economics
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)