# 3.2 — Market Competition and Surpluses — Practice

The supply and demand in the market for tomatoes are estimated to be:

\begin{align*} q_D&=1000-200p\\ q_S&=200p-200\\ \end{align*}

## 1.

Calculate the market-clearing price and quantity exchanged.

## 2.

Find the inverse demand function and inverse supply function.

## 3.

Sketch a graph of this market, labelling key points.

## 4.

Calculate the price elasticty of demand and price elasticity of supply (in equilibrium).

## 5.

Calculate the consumer surplus and producer surplus, and shade each on the graph.

## 6.

Who gets greater surplus, consumers or producers, and why?