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Suppose Megabox is a new case designed for smartphones. We know its demand curve and supply curve as below. Here the units of P and Q are, P: $/case, Q: thousand cases.
-Demand function: Qd = 100 - 2 * P
-Supply function: Qs = -20 + 4 * P
(1) How much is consumer surplus (CS) when Megabox is priced at $35 in the market?
(2) How much is consumer surplus (CS) when price the case drops to $25?
(3) How much is consumer surplus (CS) at market equilibrium price of Megabox?
(4) How much is producer surplus (PS) and total surplus (TS) at market equilibrium?
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