Question

Juan mows lawns in his neighborhood for extra money. Suppose the demand for lawn mowing in Joe’s neighborhood is: QD = 48 – 2P and that the supply of lawn mowing (Juan’s willingness to mow lawns) is: Qs = -12 + P. The market-clearing price of lawn mowing is $____ per lawn and the market-clearing quantity is ____ lawns. The corresponding consumer surplus is $____.

Answer 1

no

Answer 2

Market Clearing Price: $20
Market Clearing Quantity: 8 Lawns
Consumer surplus: $16.00