Calculate and label consumer surplus and producer surplus

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Given the following demand and supply curves: (a) Q_d=-P+10 and (b) Q_s=P. Calculate the inverse demand function (provide below) and graph the two lines on Figure 1. Calculate and label the Consumer Surplus and Producer Surplus. Add an additional line for marginal revenue (note that the slope of the marginal revenue line is twice the demand curve), graph the demand, perfectively competitive supply, and the marginal revenue line on Figure 2. Identify the following areas on your new figure: (a) deadweight loss to the economy, (b) consumer surplus, and (c) producer surplus in this new market environment.

Reference no: EM131097145

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