Compute the producer surplus at the equilibrium price

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Demand, Supply, consumer surplus and Market Equilibrium. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum

?QD?=?92 - 2Px?(Demand)

?QS?=?-16 + Px?(Supply)

where Q is quantity measured in pounds of scrap aluminum and P is price in dollars.

Complete the following table:

A. What is the condition for market equilibrium?

B. Calculate the market equilibrium price and equilibrium output?

C. What is the inverse demand curve P = f (QD)?

D. Compute the consumer surplus at the equilibrium price.

E. What is the inverse supply curve P = f (Qs)?

F. Compute the producer surplus at the equilibrium price.

Reference no: EM131246769

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