You are given the following market data for Venus automobiles in Saturnia
Demand: P = 35,000 - 0.5Q
Supply: P = 8,000 + 0.25Q
where P = Price and Q = Quantity.
a. Calculate the equilibrium price and quantity.
b. Calculate the consumer surplus in this market.
c. Calculate the producer surplus in this market.
a. Quantity = 36,000: {35,000 - 0.5Q = 8,000 + 0.25Q.; 27,000 = 0.75Q; Q = 36,000.}
Price = $17,000: {P = 35,000 - 0.5(36,000); P = 35,000 - 18,000; P = $17,000.}
b. Consumer surplus = (0.5)($35,000 - $17,
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