Question: If the newspaper market in Problem were perfectly competitive, what would be the quantity, price, consumer surplus, and producer surplus? Mark each on the graph.
Problem :The figure illustrates the situation facing the publisher of the only newspaper containing local news in an isolated community.
a. On the graph, mark the profit-maximizing quantity and price and the publisher's total revenue per day.
b. At the price charged, is the demand for this newspaper elastic or inelastic? Why?