Assume that the demand curve for apples is given by Qd = 140 - 5P, where Qd is number of pounds demanded per year and p is price per pound. The supply of apples can be stated by Qs = 40 + 3P, where Qs is the number of pounds provided.
A. What is the equilibrium price?
B. What is the equilibrium quantity supplied and demanded?
C. Calculate the consumer surplus at the equilibrium price.
D. Calculate the producer surplus at the equilibrium price.
E. Calculate the total surplus at the equilibrium price.
F. Now suppose that the government imposes a tax of $8 per pound sold, paid by the consumers. In this case, what are the price and the consumer surplus?