What is the equilibrium quantity of milk if the market price

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The demand for milk is given by Q=120,000-20,000P.

 

a. What is the equilibrium quantity of milk if the market price is $3.00?

b. What is the equilibrium quantity of milk if the market price drops to $2.90?

c. Using these results, what is the arc price elasticity of demand for milk here?

d. What is consumer surplus before and after the price decrease?

Reference no: EM13299580

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