Consider a market with Qd=240 – 6p and Qs=2p. a. What’s consumer surplus? in the solution it says 1. Qd = Qs gives that 240 – 6p = 2p. Simplifying the equation yields 8p = 240, which gives p*= 30. Plugging P*=30 into either demand or supply gives Q*= 60. CS = 1⁄2 * (40 - 30) * 60 = 300. Where did they get 40 from?
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1. Consider a market with Qd=240 – 6p and Qs=2p.
a. What’s
in the solution it says
1. Qd = Qs gives that 240 – 6p = 2p. Simplifying the equation yields 8p = 240, which gives p*= 30. Plugging P*=30 into either demand or supply gives Q*= 60.
CS = 1⁄2 * (40 - 30) * 60 = 300.
Where did they get 40 from?
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