The demand for the Tesla electric automobile is P = 200,000 – 2Q, where P is in $/car and Q is the number of cars sold per year The supply of the Tesla is P = 20,000 + 10Q, P is in $/car and Q is the number of cars produced per year. Find the equilibrium price and quantity of the car assuming there are no buyer subsidies. Also find consumer and producer surplus and total social welfare.
The demand for the Tesla electric automobile is P = 200,000 – 2Q, where P is in $/car and Q is the number of cars sold per year The supply of the Tesla is P = 20,000 + 10Q, P is in $/car and Q is the number of cars produced per year. Find the equilibrium price and quantity of the car assuming there are no buyer subsidies. Also find consumer and producer surplus and total social welfare.
Chapter6: Elasticity
Section: Chapter Questions
Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...
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The demand for the Tesla electric automobile is P = 200,000 – 2Q, where P is in $/car and Q is the number of cars sold per year
The supply of the Tesla is P = 20,000 + 10Q, P is in $/car and Q is the number of cars produced per year.
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