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Satsume Satsume
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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:
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Bart_argBart_arg
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Satsume Author
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6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
cartoon
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Yesterday
You make an excellent tutor!
ediblefruitz
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2 hours ago
Just got PERFECT on my quiz
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