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Please refer to the background information below to answer the following two questions. There are two groups of suppliers, A and B, for good X
Please refer to the background information below to answer the following two questions. There are two groups of suppliers, A and B, for good X with the following individual supply curves respectively: Group A: P = 244 + 0.8Q Group B: P = 873 + 0.462 The market demand is P = 873 0.8Q where P is price per unit of good X (in dollars), and Q is quantity of good X. 17. Suppose the market is free of government intervention. We can compute that the market equilibrium price is [ Answer17A ] dollars per unit, and the market equilibrium quantity is [ Answer17B ] units. 18. Suppose for national security reason, the central planner forces the economy to completely shut down production of good X. We will expect a welfare loss of [ Answer18 ] dollars when compared to the market without intervention
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