What is equilibrium market price and quantity

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Problem: Consider the daily, perfectly-competitive market for cotton-candy at the local state fair in your hometown; where:

-Supply: Qs (P) = 500P - 1000

Demand: Qd (P) = 11,000 - 1000P

-Hint: The P-intercepts for the supply curve is $2 and for the demand curve $11.

What is equilibrium market price (P) and quantity (Q)? Also, find consumer, producer, and economic surplus; using those initial market equilibrium points you previously found.

Reference no: EM132422752

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