4. The demand curve for a product has equation p=20 e^(-0.002q) and the supply curve has equation p=0.02q + 1, where q is the quantity and p is the price in $/unit.
a) Which is higher the price at which 300 units are supplied or the price at which 300 units
are demanded? Find both prices.
b) Sketch the supply and demand curves. Find the equilibrium price and quantity.
c) Using the equilibrium price and quantity calculate and interpret the consumer and producer surplus.
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Supply and Demand Curves and Equilibrium are investigated. The solution is detailed and well presented. The response received a rating of "5/5" from the student who originally posted the question.