Question

1. Market demand is given as QD = 250 – 0.5P. Market supply is given as QS = 2P. In a perfectly competitive equilibrium, what will be the value of consumer surplus?

a.$10 000
b.$20 000
c.$40 000
d.$80 000


2. Market demand is given as QD = 250 – 0.5P. Market supply is given as QS = 2P. In a perfectly competitive equilibrium, what will be the value of producer surplus?

a.$10 000
b.$20 000
c.$40 000
d.$80 000

1.A
2.b

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