Question
Supply and Demand of gasoline in Indonesia has the equation: QS = 20,000 + 0.73 P QD= 37,000 1.75P a. Create a Supply and
Supply and Demand of gasoline in Indonesia has the equation: QS = 20,000 + 0.73 P
QD= 37,000 – 1.75P
a. Create a Supply and Demand curve for gasoline in Indonesia
b. Determine Quantity and Price from market clearing?
c. Calculate the net loss of total (deadweight loss), if the government sets a ceiling price
from gasoline Rp 5,000. By setting a ceiling price, the producer or consumer is in better condition. Explain the reason for the answer.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
