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Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190- 28. The government
Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190- 28. The government is trying to decide between two options . Maintain the number of quotas and let the market adjust, or : Maintain the price support and increase the number of quotas. Suppose that the government decides to maintain the number of quotas and let the market adjust [c) Calculate the () price observed in the market, HINT: Sketch the supply and demand equations. Answer Do the consumer surplus. Answer Omg the producer surplus
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