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