Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 6 - Market Efficiency and Government Intervention - Exercises - 6.2 Market Equilibrium and Efficiency - Page 147: 2.1

Answer

\$1700; \$300; \$300

Work Step by Step

When you split the difference the price is the average of the consumers willingness to pay and the suppliers willingness to accept. $(2000+1400)\div2=3400\div2=1700$ The surplus is the same for both the consumer and the supplier. $2000-1700=300$ $1700-1400=300$
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