How much consumer surplus is
Problem: Consider a competitive industry in which each firm has a demand function of QD = 1,400 - 4P and a supply function of QS = 200 + 2P. How much consumer surplus is lost if there's a price floor of $300?
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demand function of QD = 1,400 - 4P and a supply function of QS = 200 + 2P. How much consumer surplus is lost if there's a price floor of $300?
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