A person's demand and supply equations for rice per month are as following:
Demand: Q = 40-5*P
Supply Q-20 + 10*P
Required:
a. What are the market equilibrium price ($/kg) and quantity (kgs/month) for rice?
b. At the market equilibrium price, what are the consumer surplus and producer surplus?
c. If the rice price rises to $5/kg,
what are the consumer surplus and producer surplus? what is the impact of this rice price increase on the consumers and producers as a whole?