Mangerial economics Question 2

label Economics
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schedule 1 Day
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ASSUME THE DEMAND CURVE FOR 16" PIZZA IN ROME IS P=50-4Q, and the supply curve is P=Q.

What is the consumer surplus and producer surplus?

Jun 3rd, 2015

Please let me know if you need any clarification. I'm always happy to answer your questions.

P=Q and P=50-4Q

the curves meet at Q=50-4Q, 5Q=50, Q=10 and therefore P=10

customer surplus=(1/2)*(40)*(10)= 200

producer surplus=(1/2)*(10)*(10)=50

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 3rd, 2015

Is there any way you can send me a graph of this? Thank you!

Jun 3rd, 2015

THANK YOU, Do you know how to make all of your questions private on this website and change your username?

Jun 3rd, 2015


Jun 3rd, 2015
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