ECON 102 - The demand curve is given by the equation
Question # 00542921
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Updated on: 06/09/2017 03:15 AM Due on: 06/09/2017
The demand curve is given by the equation QD = 100 – 10p and the supply curve by
QS = 10p
- Find the equilibrium price and quantity.
- Find the consumer surplus if price is equal to the equilibrium price.
- Find the producer surplus if price is equal to the equilibrium price.
Now suppose the government imposes a price ceiling at $4.
- What would be the effect of the price ceiling?
- Calculate consumer and producer surplus after the ceiling.
- Calculate deadweight loss after the ceiling is imposed.
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Solution: ECON 102 - The demand curve is given by the equation