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Linear supply and demand curves

3000) = 3000. Total surplus = 3000 + 3000 = 6000. Free market total surplus is greater than social planner total surplus. In Exhibit 3, plot the linear supply and demand curves for painting apartments implied by the information in questions (1) and (2) above (draw them so that they contact the vertical axis). Show consumer and producer surplus for the free market equilibrium price and quantity. Is this allocation of resources efficient? Why?

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