Question

The demand for milk is

P = 150 - 2Q

the supply curve is

P = 4Q.

What is the level of consumer surplus at the equilibrium price and quantity?

Answer #1

Consumer surplus =625

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Part A
A demand curve is P = 10- Q. So its MR is
A)5-2Q
B)10- 4Q
C)10 - Q
D)10 -2Q
Part B
A non- competitive firm's demand curve is P = 10- 2Q. So its MR
is
A)5-2Q
B)10- 4Q
C)10 - Q
D)5 - Q
Part C
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