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The Ministry of Tourism in the Republic of Palau estimates that the demand for its scuba...

The Ministry of Tourism in the Republic of Palau estimates that the demand for its scuba diving

tours is given by Q D =6,000 – 20P, where Q is the number of divers served each month and P is

the price of a two-tank dive. The supply of scuba diving tours is given by Q S = 30P – 2,000.

a. Solve for the equilibrium price and quantity.

b. Find the value of the consumer surplus received by divers visiting Palau. (Hint: It may help to draw

a graph.)

c. Find the value of producer surplus received by dive shops. (Hint: It may help to draw a graph.)

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Using Supply and Demand to Analyze Markets — End of Chapter Problem The Ministry of Tourism...
Using Supply and Demand to Analyze Markets — End of Chapter Problem The Ministry of Tourism in the Republic of Palau estimates demand and supply for its scuba diving tours is given by ??=6,000−20?, where ?Q is the number of divers served each month and P is the price of a two-tank dive. The supply of scuba diving tours is given by ??=30?−2,000QS=30. The equilbrium price is $160, and the equilibrium quantity is 2,800 customers diving each year. The Ministry...
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