Calculate the loss in consumer and producer surplus

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Reference no: EM131101437

The demand and supply functions for pizza in the local market are: QD = 20,000 - 833P and QS = 5,000 + 417P. Calculate consumer and producer surplus in this market. If the minimum wage is increased by $2 per hour, the new market supply curve becomes: Q'S = 4,000 + 417P. Calculate the loss in consumer and producer surplus in the pizza market due to this change.

Reference no: EM131101437

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