Question
2. I n a perfectly competitive market, the demand curve is Q=200-3P and supply is Q=10P. a.Find the market equilibrium. a.A price ceiling of P=$2
2.In a perfectly competitive market, the demand curve is Q=200-3P and supply is Q=10P.
a.Find the market equilibrium.
a.A price ceiling of P=$2 is placed in the market. Find the new equilibrium. Is a surplus or shortage created? What is its size?
b.Find the change in consumer, producer surplus and dead weight loss.
a.Could a rationing system be used? At what level?
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Quantitative Methods for Business
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
13th edition
1285866312, 978-0357685648, 978-1285866314
