A free market can be described by the following equations:
Qd = 180 - 3P (equation for the market demand curve)
and
Qs = -50 + 2P (equation for the market supply curve)
What is the equilibrium price (P) in this market? (whole number only; no decimal)
What is the equilibrium quantity (Q) in this market? (whole number only; no decimal)
What are the total gains from trade in this market? (whole number only; no dollar sign, comma, or decimal)
How much is consumer surplus (CS)? (whole number only; no dollar sign, comma, or decimal)
How much is producer surplus (PS)? (whole number only; no dollar sign, comma, or decimal)
Hints:
What is the condition for equilibrium?
When you graph, what data/points are missing? How can you find these points using the equations given?
What is the formula for calculating consumer surplus? producer surplus?