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Consider a market characterized by the following inverse demand and supply functions: PX = 50 − 4QX and PX = 10 + 2QX. Compute the surplus producers and consumer receive when a $30 per unit price floor is imposed on the market

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Related questions

Consider a market characterized by the following inverse demand and supply functions:

Px = 40 - 4Qd/x and Px = 10 + 2Qs/x

Determine the following:

Equilibrium price

Equilibrium quantity

Consumer expenditures

Consumer surplus

Producer surplus

The demand curve for product X is given by QXd = 400 - 2PX.

a. Find the inverse demand curve.

PX = 200 - 0.5QXd

Instructions: Round your answer to the nearest penny (2 decimal places).

b. How much consumer surplus do consumers receive when Px = $40?

$

c. How much consumer surplus do consumers receive when Px = $30?

$

d. In general, what happens to the level of consumer surplus as the price of a good falls?

The level of consumer surplus "increases" as the price of a good falls.

The demand curve for product x is given by Qx^d=460-4Px

a.)Find the inverse demand curve.
b.)How much consumer surplus do consumers receive when Px=$35?
c.)How much consumer surplus do consumers receive when Px=$25?
d.)In general, to the level of consumer surplus as the price as the price of a good falls?

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