In a competitive market the demand and supply curves are qp


In a competitive market, the demand and supply curves are Q(p) = 12 - p and S(p) = 5p respectively.

1) Consumer surplus in this market equals?

2) Producer Surplus?

3) What percentage of the total surplus is lost if the government imposes a sales tax (ad valorem) of 20% collected from the producer?

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Business Economics: In a competitive market the demand and supply curves are qp
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