Question

uppose the demand curve is: P = 200 – 2Qd and the supply curve is: P = 40 + 2Qs. If the government imposes a price ceiling at $50, consumer surplus will be

Answer 1

Answer on QUESTION #73474 - Economics | Microeconomics

Task: oppose the demand curve is: $P = 200 - 2Qd$ and the supply curve is: $P = 40 + 2Qs$. If the government imposes a price ceiling at $50, consumer surplus will be

Answer:

If the price is $50, Qd will be:

50 = 200 - 2Qd

2Qd = 150

Qd = 75

Consumer surplus will be $\frac{1}{2} \times (200 - 50) \times 75 = \$5625$

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