Top Posters
Since Sunday
w
5
a
3
j
2
a
2
t
2
u
2
r
2
j
2
j
2
l
2
d
2
y
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Satsume Satsume
wrote...
Go to Answer
Posts: 761
Rep: 0 0
6 years ago
Consider a competitive market with supply and demand curves expressed as:
   Supply P = 5 + 0.036Q     Demand P = 50  0.04Q,       
where P represents unit price in dollars and Q represents sales rate in units per day.

a.   Determine the equilibrium price and sales rate.
b.   If this were the labor market for low skilled workers, what would be the loss in consumer surplus (purchaser surplus) when the minimum wage is set at $40 per day (an eight hour day)?
c.   What is the loss or gain in producer surplus (seller surplus) in part b. above?
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
Read 160 times
1 Reply
Replies
Answer verified by a subject expert
Bart_argBart_arg
wrote...
#1
Top Poster
Posts: 570
Rep: 14 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 400 words.
1

Related Topics

Satsume Author
wrote...

6 years ago
Thanks
jasonbourne
wrote...

Yesterday
Correct Slight Smile TY
sadiewolf
wrote...

2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1402 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 187
  
 704
  
 257