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1. Suppose that the annual demand for prescription antidepressants such as Prozac , Paxil , and Zoloft is, in inverse form , given by:P= 1000-0.025Q. Suppose that the competitive supply curve is given by : P= 150+0.033Q.
a. Compute the equilibrium price and annual quantity of antidepressants.
b. Compute 1)producer surplus; and 2)consumer surplus in this competitive equilibrium
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