Find the new price and quantity

Reference no: EM132124015

Question: Again, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Now, however, buyers and sellers have transaction costs of $2 and $3 per unit, respectively. Compare the equilibrium values with those you calculated for Problem.

Problem: In a perfectly competitive market, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Find equilibrium price and quantity and producer and consumer benefits. Say an innovation then lowers every seller's marginal costs by $5 at all outputs. Find the new price, quantity, and producer and consumer surpluses.

Reference no: EM132124015

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Find the new price and quantity : Again, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Now, however, buyers and sellers have transaction costs of $2 and $3 per unit, respectively.

Find equilibrium price and quantity : In a perfectly competitive market, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Find equilibrium price and quantity and producer and consumer.

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