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Suppose that the market for a children's book is given by the following demand and supply functions: Demand: Qd= 70-2P Supply: Qs= -10-2P Where: Qd
Suppose that the market for a children's book is given by the following demand and supply functions:
Demand: Qd= 70-2P
Supply: Qs= -10-2P
Where: Qd and Qs are quantity demand and quantity supplied respectively, and P is the Price.
Now suppose that, in an attempt to support the book publisher, a minimum price per book is set t $25. With the price floor in place, the new consumer and producer surplus is equal to $_______
Equilibrium price: 20
Equilibrium quantity: 30
Consumer surplus (no price floor) 225
Producer surplus (no price floor) 225
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