Explore BrainMass

Explore BrainMass

    Consumer Surplus vs Producer Surplus

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The inverse market demand curve is P=140-Q, and the inverse supply curve is P=20+Q. Assuming the market is competitive, compute the following:

    1. Equilibrium price
    2. Equilibrium quantity
    3. Economic value of the equilibrium consumption
    4. Resource cost (the same thing as production cost, or economic cost) of the equilibrium production
    5. Net benefits of economic activity in this market, given the equilibrium
    6. Consumer surplus in the market
    7. Producer surplus

    Please assist with the problem. Also, please use numbering for the solutions to the different parts of the problem. If you have questions, please ask me. I check email everyday. Thank you for your help!

    © BrainMass Inc. brainmass.com March 4, 2021, 8:11 pm ad1c9bdddf
    https://brainmass.com/economics/general-equilibrium/consumer-surplus-vs-producer-surplus-151144

    Solution Summary

    This solution assists in computing the required information.

    $2.49

    ADVERTISEMENT