Question 1199379
.
The demand and supply functions are given by:
P=100-2Qd, and P=20+2Qs respectively, where P, Qd, and Qs represent the prices, quantities demanded, and quantities supplied.
(Prices are measured in € and Quantities in Units)
(a) Find the equilibrium point algebraically and graphically.
(b) Calculate and explain consumer surplus, producer surplus and total surplus.
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<pre>
In the equilibrium point, the values Qd and Qs are the same,  Qd = Qs,
So we replace them by single variable Q in equations. 
We get then two equations in two unknowns

    P = 100 - 2Q,    (1)
    P =  20 + 2Q.    (2)


In these equations, left side is the same, so right side must be equal

    100 - 2Q = 20 + 2Q,

or

    100 - 20 = 2Q + 2Q,

        80   =    4Q

         Q   =    80/4 = 20.


Then from equation (1)

    P = 100 - 2*20 = 100 - 40 = 60.


<U>ANSWER</U>.  The equilibrium point is  (P,Q) = (60,20).
</pre>

Part &nbsp;(a) &nbsp;is solved.