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5. In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q = 400 250P and QS = 250P 100,
5. In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q = 400 250P and QS = 250P 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. 17. In that same market for cotton (Q17), suppose now the government instead sets a quota at 75 pounds of cotton. a. Draw a rough sketch of this market, only paying particular attention to choke prices. b. Calculate the consumer and producer surplus before the regulation is imposed. c. How much cotton is exchanged in the market with the regulation? d. Calculate the consumer and producer surplus after the regulation. Did consumer surplus increase or decrease? Did producer surplus increase or decrease? Explain. e. Define deadweight loss. What is the deadweight loss in this market
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