Suppose the demand and supply curves are described by MC = 1.11 + 0.89Q WTP = 8.92 - 0.83Q Suppose the price is 6.37. A. Given the price above, is there a shortage or a surplus? Surplus Shortage B. What is the value of the shortage or surplus? Only enter a positive number.
Suppose the demand and supply curves are described by MC = 1.11 + 0.89Q WTP = 8.92 - 0.83Q Suppose the price is 6.37. A. Given the price above, is there a shortage or a surplus? Surplus Shortage B. What is the value of the shortage or surplus? Only enter a positive number.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 21P
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Question
Suppose the
MC = 1.11 + 0.89Q
WTP = 8.92 - 0.83Q
Suppose the
A. Given the price above, is there a shortage or a surplus?
Surplus
Shortage
B. What is the value of the shortage or surplus? Only enter a positive number.
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