Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase the number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.

Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase the number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3PA

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Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase tehe number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.
Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase tehe number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss. 2. if the government increases the number of quoatas available to 72 units calculate the consumer surplus, producer surplus and dead weight loss
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