Problem
The demand and supply equations for product X are:
P = 60 - 2Q P = 10 + 3Q
a. Algebraically determine the equilibrium price and quantity for product X.
b. Show the equilibrium in the form of a graph. Label the graphs completely (axes,intercepts, curves, equilibrium price and quantity.
c. Use your carefully labeled graph to calculate the dollar amount of consumer andproducer surplus and total surplus that would exist at the competitive equilibrium.
d. Calculate the dollar amount of the total benefits that are derived by all consumers whopurchase this product at the equilibrium price.
Calculate the total cost of producing theequilibrium quantity in this market. What is the relationship between total surplus, total benefitsand total costs?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.