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Please help ?!? Question 10 (Challenging). Pawnee is the fourth most obese city in America. In Pawnee, the market demand curve for soft drink is

Please help ?!?

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Question 10 (Challenging). Pawnee is the fourth most obese city in America. In Pawnee, the market demand curve for soft drink is given by: P = 50 (2/2; and the market supply is given by: P = (2/3. In order to tackle their obesity epidemic, the government of Pawnee wants to use a price floor to halve the quantity of soft drink being consumed. a) What level must the price floor be set at to achieve the reduction in consumption? b) Illustrate the effect of this price floor on the market for soft drinks using a graph. G) Calculate the change in consumer and producer surplus as a result of this intervention as well as the dead weight loss. Label the appropriate areas on your graph. d) How much should the tax be in order to have the same change in consumption? e) How much revenue will this raise for Pawnee? f) Is there any difference in dead weight loss between the two policies? 9) Which intervention would you prefer to use? Why

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