Market demand is given as Q_D= 280 - 4P.Market supply is given as Q_S= - 40 + 2P.In a perfectly competitive equilibrium,what will be the value of producer surplus

Question

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In equilibrium, QD = QS. Solving 280 - 4P = -40 + 2P gives P = 40. At P = 40, Q = 120. Producer surplus is the area above the supply curve and below the price, which is 0.5 * (40 - 20) * 120 = $1200.

Market Demand Is Given as QD = 280 - 4P

Market Demand Is Given as Q_D= 280 - 4P