Economic surplus associated with the crude oil market

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If the two functions from questions 1( MB(q)=320-18q ) and 2 ( MC(q)=20+6q ) were demand and supply functions:

(a) Plot both functions on one graph.

(b) Show (i.e., calculate algebraically, brie y showing your steps) what the equilibrium price and quantity would be.

(c) Calculate total economic surplus associated with the crude oil market and indicate how much of this surplus accrues to consumers and how much to producers.

Reference no: EM131236980

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