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Consider the market of social media product produced by foreign suppliers. There are two groups of foreign suppliers, A and B, for a social media
Consider the market of social media product produced by foreign suppliers. There are two groups of foreign suppliers, A and B, for a social media product with the following individual supply relations respectively: Supply A: P = 72 1.6Q Supply B: P = 49 3Q The corresponding market demand is P = 129 2.8Q where P is price per unit of the social media product (in dollars), Q is quantity of social media product in thousand units. 4. We can compute that without government intervention, the market equilibrium price is [ Answer04A = 81.65 ] dollars per unit, and the market equilibrium quantity is [ Answer04B = 16.91 ] thousand units. 5. Suppose for national security reason, the central planner completely bans the consumption of the social media product produced by foreign suppliers. We will expect a welfare loss of [ Answer05 = 607.13 ] thousand dollars when compared to the market without intervention
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