The supply and demand for broccoli are described by the following equations: Supply: QS = 4P - 80 Demand: QD = 100 – 2P a. Graph the supply and the demand curve. What is the equilibrium price and quantity? Make sure you label the axes and intercepts clearly. b. Calculate the consumer surplus, producer surplus, and total surplus at the equilibrium. c. Now assume there is a sudden surge in health consciousness among the consumers. How do you expect it will affect the producer surplus for broccoli? Can you show the effect in a clearly labeled diagram? Explain your diagram in a sentence or two. (20 points)

Q&A Education