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Microeconomics

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Moderate

Market Surplus: The Victor

MICRO-$1EOTL

In the market for phonographs, the supply and demand curves are:

$$P = 1000 - 20Q_D$$
$$P = 100 + 10Q_S$$

Which leads to a market that looks like:

Nicholas Huntington-Klein. Created for Albert.io. Copyright 2016. All rights reserved.

In this market, which of the following is true? Use the written supply and demand curves to solve the problem, rather than the graph.

A

There is more consumer surplus than producer surplus.

B

There is more producer surplus than consumer surplus.

C

There is an equal amount of consumer and producer surplus.

D

There is not enough information to tell.