Simple Homework questions

1. Consider a perfectly competitive market where the mar- ket demand curve is given by Q = 72-4P and the market supply curve is given by Q = -6 + 2P. In each of the following situations (a-e), determine the following items (i-viii) i) The quantity sold in the market. ii) The price that consumers pay (before all taxes/subsidies). iii) The price that producers receive (after all taxes/subsidies). iv) The range of possible consumer surplus values. v) The range of possible producer surplus values. vi) The government receipts. vii) The net benefit. viii) The range of deadweight loss. lina3 (a) A market with no intervention. (b) A market with tax T = 3. (c) A market with subsidy S = 6. (d) A market with price ceiling C = 11. mo (e) A market with price floor F = 14