The market for bagels in San Francisco is perfectly competitive. Presently, the daily demand for bagels in San Francisco is Q d = 15,000 - 5,000P, and the supply of bagels is Q s = 10,000P, where P is the price of bagels and quantities Q d and Q s , respectively, are the number of bagels bought and sold each day. The figure below shows the demand and supply curves for bagels in San Francisco.

-In competitive equilibrium in the San Francisco bagel market, total consumer surplus is $__________ and total producer surplus is $_________. Social surplus is $__________.
Now suppose Einstein Bagels buys every other bagel store in town and forms a bagel monopoly in San Francisco.

Question

The market for bagels in San Francisco is perfectly competitive. Presently, the daily demand for bagels in San Francisco is Q d = 15,000 - 5,000P, and the supply of bagels is Q s = 10,000P, where P is the price of bagels and quantities Q d and Q s , respectively, are the number of bagels bought and sold each day. The figure below shows the demand and supply curves for bagels in San Francisco.
 
-In competitive equilibrium in the San Francisco bagel market, total consumer surplus is $__________ and total producer surplus is $_________. Social surplus is $__________.
Now suppose Einstein Bagels buys every other bagel store in town and forms a bagel monopoly in San Francisco.

Quizplus · Accepted Answer

The Answer of The market for bagels in San Francisco is perfectly competitive. Presently, the daily demand for bagels in San Francisco is Q d = 15,000 - 5,000P, and the supply of bagels is Q s = 10,000P, where P is the price of bagels and quantities Q d and Q s , respectively, are the number of bagels bought and sold each day. The figure below shows the demand and supply curves for bagels in San Francisco.
 
-In competitive equilibrium in the San Francisco bagel market, total consumer surplus is $__________ and total producer surplus is $_________. Social surplus is $__________.
Now suppose Einstein Bagels buys every other bagel store in town and forms a bagel monopoly in San Francisco.

The Market for Bagels in San Francisco Is Perfectly Competitive