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Suppose that the inverse market demand function for widgets is p (q) = V 400 qp = and the inverse market supply function for widgets is ps (q6) q + 5. +5. 60 Equilibrium in the market for widgets requires that qP = q* at an economically relevant point (p*,q*). A point (p*,q*) is economically relevant if both p* > 0 and q* > 0. 1. Find the equilibrium price (p*) and equilibrium quantity (q*) for this market for widgets. (9 marks.) 2. Find the aggregate consumer surplus from the market for widgets when it is in equilibrium. (A hint is provided below.) (9 marks.) 3. Find the aggregate producer surplus from the market for widgets when it is in equilibrium. (A hint is provided below.) (7 marks.) Suppose that the inverse market demand function for widgets is p (q) = V 400 qp = and the inverse market supply function for widgets is ps (q6) q + 5. +5. 60 Equilibrium in the market for widgets requires that qP = q* at an economically relevant point (p*,q*). A point (p*,q*) is economically relevant if both p* > 0 and q* > 0. 1. Find the equilibrium price (p*) and equilibrium quantity (q*) for this market for widgets. (9 marks.) 2. Find the aggregate consumer surplus from the market for widgets when it is in equilibrium. (A hint is provided below.) (9 marks.) 3. Find the aggregate producer surplus from the market for widgets when it is in equilibrium. (A hint is provided below.) (7 marks.)

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