When the price of widges is 41, the quantity demanded of widgets is 27 and the quantity supplied of widges is 63. What is the surplus on this market

Part a:  What will be the equilabrium price that Dumphy and Funke will charge?

Price charged = $30

Part b: What are the profits for Dumphy and Funke at the equilibrium price?

Profit on equilibrium price = $0

Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?

Price competition

Explanation:

Part a:  What will be the equilabrium price that Dumphy and Funke will charge?

Price charged by each of the artists will be equal to their marginal cost.

Thus, equilibrium P = MC = $30.

Part b: What are the profits for Dumphy and Funke at the equilibrium price?

Equilibrium profits will be 0 at the equilibrium because price charged is equal to MC, leading to no profits.

Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?

Price competition - as changes in price will lead to changes in demand and thus sales