Determine the equilibrium price and quantity

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1. A pharmaceutical company has estimated the following demand and supply curves for their new drug:

Q= 10 - 4P

Qs  = -2 + 8P

where Qand Qare in millions of dollars

a. Determine the equilibrium price and quantity

b. Now suppose that demand for the drug increases to  Q= 16 - 4P. What will be the new equilibrium price and quantity?

d. What is the consumer surplus before and after the increase in demand?

e. What is the producer surplus before and after the increase in demand?

f. What is the total surplus before and after the change in demand?

Reference no: EM133080658

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