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In Problem Set #2, we modeled the market for 2-bedroom apartments in Wisconsin with the following demand and supply curves: Q D = 10,000 2P
In Problem Set #2, we modeled the market for 2-bedroom apartments in Wisconsin with the following demand and supply curves: Q D = 10,000 2P Q; = 5,000 + 0.5P Calculate the amount of Consumer Surplus, Producer Surplus, and Deadweight Loss associated with the $1200 price ceiling. (Feel free to reference the solutions from last week if you are having trouble graphing the curves) Consumer Surplus = type your answer... . Producer Surplus = type your answer... . DWL = [ type your answer... ]. We can also verify that CS + PS + DWL equals the total surplus in the market before the price ceiling was put in place. The total surplus prior to the price ceiling was type your
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