Homework Help: Economics

Posted by Anonymous on Wednesday, February 25, 2009 at 8:37am.

Assume the demand curve for concert tickets is Qd= 300 - c*p and the supply curve is Qs= p - 20 (quantity expressed in thousands of tickets)
What is the equilibrium price and quantity
What are the consumer surplus and the producer surpluses.

Economics - economyst, Wednesday, February 25, 2009 at 9:19am
Is "c" in your demand equation an unspecified parameter?

Anyway, set Qd=Qs and solve for p. With p, solve for Qd. Consumer surplus is the area of the triangle above price but below demand. Producer surplus is the area of the triangle below price but above supply.

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