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Suppose the market for cellular service is represented by the following demand and supply equations: QD = 50 0.2P ; Q5 = 2P - 60

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Suppose the market for cellular service is represented by the following demand and supply equations: QD = 50 0.2P ; Q5 = 2P - 60 a. Calculate the equilibrium in this market. Quantity = and Price = b. Calculate the amount of Consumer and Producer Surplus in this market. Consumer Surplus = and Producer Surplus = c. Suppose the government imposes a $40 price ceiling. Calculate the new quantity sold in the market. Quantity sold = d. Does this price ceiling create a shortage or surplus? It creates a e. Calculate the amount of consumer surplus after the price ceiling. Consumer Surplus = f. Calculate the amount of deadweight loss associated with the price ceiling. Deadweight loss =

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