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Question
Table 4-6| Demand | Supply |
| P = 80 - QD | P = 50 + 1/2 QS |
| QD = 80 - P | QS = 2P - 100 |
Refer to Table 4-6. The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of economic surplus in this market?
A) $300 thousand
B) $600 thousand
C) $1,200 thousand
D) $1,600 thousand
Answer
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