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Question-3 Given the following demand and supply function for the hypothetical economy (Using graphs and showing the solution steps): p=9-qD and p=2qS a) Solve for
Question-3 Given the following demand and supply function for the hypothetical economy (Using graphs and showing the solution steps):
p=9-qD and p=2qS
a) Solve for equilibrium variables
b) Determine the consumer, producer and total surplus
c) Using the price floor of $8, determine the consumer, producer and total surplus
d) In the existence of $8 price floor, what would be the deadweight loss and the excess supply (or demand) in this economy
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