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Suppose market demand is P= 25 -Q and market supply is P=5+Q . In order to support consumers government imposes a price ceiling of $10.How
Suppose market demand is P= 25 -Q and market supply is P=5+Q . In order to support consumers government imposes a price ceiling of $10.How much is the producer's surplus after this policy?
I know to find equilibrium you must equate the equations and then once you find Q you plug it in.
So P= 25-Q=5+ Q
Q=10
However I am unsure where to plug in the price ceiling.
Thanks,
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