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The inverse demand and supply functions for a product are given as:
where P is price, Q is quantity and the subscripts d and show demand and supply, respectively. (a) Determine the equilibrium price and quantity.
(b) Using the definite integral, calculate the consumer and producer surpluses at the equilibrium position.
(c) Give your answers to part (a) and (b) on an appropriate diagram.
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demand for tea, Y, are assumed to be affected by income of students, X. A simple linear regres-sion analysis was performed on 20 observations and the results were: Independent vari
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