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The market demand for widgets is given as follows. ----------------------------------------------------------- Demand: P = 1302 8Q dollars per widget ----------------------------------------------------------- Suppose that the government imposes a
The market demand for widgets is given as follows. ----------------------------------------------------------- Demand: P = 1302 8Q dollars per widget ----------------------------------------------------------- Suppose that the government imposes a price ceiling at 288 dollars per widget. After the ceiling is imposed, 36 units are produced and traded. 1. After the ceiling is imposed, there will be an excess demand of Answer for part 1 units. 2. If there is a competitive market for bribery to determine the allocation, the equilibrium bribe for the right to purchase one unit of widget is Answer for part 2 dollars. 3. If there is a competitive market for bribery to determine the allocation, the consumer surplus is Answer for part 3 dollars
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