document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1195938>Question 1195938</A>: <I><SPAN STYLE=\"word-break: break-all;\"> please help me solve this.\r<BR>\n" );
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document.write( "Consider the market demand and the supply functions as Demand: P=500-25Q and Supply: <BR>\n" );
document.write( "P=50+20Q.<BR>\n" );
document.write( "i) Calculate the equilibrium price and Quantity [ 5 marks]<BR>\n" );
document.write( "ii) Calculate the consumers’ and producers’ surplus [ 5 marks]  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #828572 by </B><A HREF=/tutors/aboutme.mpl?userid=MathLover1><B>MathLover1(20849)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=MathLover1><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=MathLover1><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=828572\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> \r<BR>\n" );
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document.write( "Demand: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=500-25Q ALIGN=MIDDLE  ALT=\"P=500-25Q\"   DISABLED_style= \"max-width:90%; height:auto;\" > <BR>\n" );
document.write( "Supply: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=50%2B20Q ALIGN=MIDDLE  ALT=\"P=50%2B20Q\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "i) Calculate the equilibrium price and Quantity  \r<BR>\n" );
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document.write( "An equilibrium price, also known as a market-clearing price, is the consumer cost assigned to some product or service such that supply and demand are <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=equal ALIGN=MIDDLE  ALT=\"equal\"   DISABLED_style= \"max-width:90%; height:auto;\" >, or close to equal.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500-25Q+=50%2B20Q ALIGN=MIDDLE  ALT=\"500-25Q+=50%2B20Q\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500-50+=25Q%2B20Q ALIGN=MIDDLE  ALT=\"500-50+=25Q%2B20Q\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=450+=45Q+ ALIGN=MIDDLE  ALT=\"450+=45Q+\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Q+=450%2F45 ALIGN=MIDDLE  ALT=\"Q+=450%2F45\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Q+=highlight%2810%29+ ALIGN=MIDDLE  ALT=\"Q+=highlight%2810%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "so Quantity is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=10 ALIGN=MIDDLE  ALT=\"10\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "and the equilibrium price is\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P=500-25%2A10 ALIGN=MIDDLE  ALT=\"+P=500-25%2A10\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=500-250 ALIGN=MIDDLE  ALT=\"P=500-250\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=+highlight%28250%29 ALIGN=MIDDLE  ALT=\"P=+highlight%28250%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "ii) Calculate the consumers’ and producers’ surplus \r<BR>\n" );
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document.write( "Consumer Surplus: \r<BR>\n" );
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document.write( "Consumer Surplus= <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28%28500.00+-+250.00%29+%2A+10.00%29+%2F+2 ALIGN=MIDDLE  ALT=\"%28%28500.00+-+250.00%29+%2A+10.00%29+%2F+2\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Consumer Surplus=<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%281250.00%29 ALIGN=MIDDLE  ALT=\"highlight%281250.00%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Producer Surplus:\r<BR>\n" );
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document.write( "Producer Surplus= <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28%28250.00+-+50.00%29%2A+10.00%29+%2F+2 ALIGN=MIDDLE  ALT=\"%28%28250.00+-+50.00%29%2A+10.00%29+%2F+2\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Producer Surplus=<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%281000.00%29 ALIGN=MIDDLE  ALT=\"highlight%281000.00%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( " </SPAN>\n" );
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