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Question
Table 4.7| Demand | Supply |
| P = 50 2QD | P = 35 + QS |
| QD = 25 0.5P | QS = P 35 |
Refer to Table 4-7. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of economic surplus in this market?
A) $5 thousand
B) $12.5 thousand
C) $25 thousand
D) $37.5 thousand
Answer
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