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The demand for guided rafting trips through the Grand Canyon is given by p = 42 - 5qd.
The supply curve for rafting trips is p = 7 + 2qs.
a) What is the market equilibrium price and quantity of rafting trips on the Grand Canyon?
b) Graph the equilibrium. Label the intercepts and the equilibrium price and quantity.
c) Label the areas on your graph from part b). Indicate which area corresponds to consumer surplus. Indicate which area corresponds to producer surplus.
d) Calculate consumer surplus.
e) Calculate producer surplus.
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