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Consider still the current situation with the increase in demand (new demand). Suppose now that the government decides to increase the number of quotas available
Consider still the current situation with the increase in demand (new demand). Suppose now that the government decides to increase the number of quotas available to 1200 dozens a day, but it keeps the price support at its current level of $ 2. Considering the increase in the number of quotas, calculate the Consumer Surplus, the Producer Surplus, and the welfare loss compared to the optimal situation. (3 points)
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