Inverse market supply curve, Macroeconomics

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Consider the market for the trusty widget (the most common good in the world if economics textbooks are to be believed). Assume that the market is perfectly competitive. Suppose the inverse market supply curve is given as:

P = 10 + 0.5QS

And that the inverse market demand curve is:

P = 22 - 2.5Qd

A) Find the market equilibrium price, PE, and the market equilibrium quantity, QE. Why is this price and quantity considered efficient?

B) Determine the value of the producer surplus and consumer surplus at equilibrium.

C) Find the total surplus, but this time use integration from 0 to QE to solve for this solution. Show that this is equivalent to the sum of CS and PS you found in Part (B).


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