Demand curve Q = 10 – P Supply Curve Q = 2P – 2
10 – P = 2P – 2
equilibrium price $4
equilibrium quantity 6
Please explain how to get the consumer surplus, producer surplus, and total surplus?
If government implemented a price floor at $5 per cup of coffee. what is the consumer surplus, producer surplus and total surplus?
Suppose the government imposed a $2 tax on sellers. What would the new equilibrium price and quantity be? Total tax paid by sellers and total by buyers?
If you could show me how you get these answers I would appreciate it so I will know what to do on my test. I am sure something like this will be on there.