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Suppose the Demand and Supply Curves for Shampoo Are Given

Question 132

Essay

Suppose the demand and supply curves for shampoo are given by
QD = 18 - 5P
QS = -3 + 2P
where QD is the quantity of shampoo demanded (in thousands of bottles), QS is the quantity supplied, and P is the price of shampoo (in dollars per bottle). Calculate producer surplus at the equilibrium price using calculus.

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