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Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation can be represented as QS = -10 + P.
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Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation can be represented as QS = -10 + P.
a. Find the equilibrium price and quantity.
b. At a price ceiling of $20, what is the QD and QS. What is the deadweight loss, consumer surplus and producer surplus amount?
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Step: 1
a Finding the equilibrium price and quantity Set the demand Qd equal to the supply Qs 100 2P 10 P Combine like terms 3P 110 Solve for P equilibrium pr...
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
