micro ques.

[Nikkita]

Assume that the demand for sporting guns is described by QD = 100-2p and the supply is described by QS = -20 + p (QD and QS are in millions, p is in $). Compute the total value created in the market for sporting guns.

a)      100

b)      200

c)       300

d)      400

(Correct ans. =300)..how?

[Abhitesh]

getting 800. Q=20, P=40.

[sun]

I think value is total surplus and here consumer surplus 100 and producer surplus 200 so total surplus is 300