11. The supply and demand for broccoli are described by the following equations: Supply: QS = 4P...

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11. The supply and demand for broccoli are described by the following equations:

Supply: QS = 4P – 80 Demand: QD = 100 – 2P.

Q is in bushels, and P is in dollars per bushel.

a. Graph the supply curve and the demand curve. What is the equilibrium price and quantity?

b. Calculate consumer surplus, producer surplus, and total surplus at the equilibrium.

c. If a dictator who hated broccoli were to ban the vegetable, who would bear the larger burden—the buyers or sellers of broccoli?

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Essentials Of Economics

ISBN: 9780324590029

5th Edition

Authors: N. Gregory Mankiw

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