Question
(10) The supply and demand for almonds are Q D = 80 - 10 P and Q S = 10 P , where P is
(10) The supply and demand for almonds areQD= 80- 10PandQS= 10P, wherePis price per bag andQmeasures hundreds of bags per day.
Draw the diagram to showcase calculation.
A.What is the equilibrium price and quantity?
B.Calculate consumer and producer surplus
C.Suppose the government imposes a price floor of $7 per bag. Is there a shortage or surplus of almonds and, if so, what is the size?
D.Calculate consumer and producer surplus with the price floor.
E.What is the size of the deadweight loss?
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Economics
Authors: R. Glenn Hubbard, Anthony Patrick O Brien
7th edition
134738314, 9780134738116 , 978-0134738321
