4.8 Suppose that the demand curve for wheat is Q = 100 - 2p and the supply...
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4.8 Suppose that the demand curve for wheat is Q = 100 - 2p and the supply curve is Q = -20 + p.
The government imposes a price ceiling of p = 30.
(Hint: See Q&A 8.5.)
a. Describe how the equilibrium changes.
b. What effect does this price ceiling have on consumer surplus, producer surplus, and deadweight loss?
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Managerial Economics And Strategy
ISBN: 9780135640944
2nd Global Edition
Authors: Jeffrey M. Perloff, James A. Brander
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