Question
The supply and demand for almonds are Q D = 80 - 10 P and Q S = 10 P , where P is price
The supply and demand for almonds areQD= 80- 10PandQS= 10P, wherePis price per bag andQmeasures hundreds of bags per day.
A.What is the equilibrium price and quantity?
B.Calculate consumer and producer surplus
C.Suppose the government imposes a price floor of $7 per bag. Is there a shortage or surplus of almonds and, if so, what is the size?
D.Calculate consumer and producer surplus with the price floor.
E.What is the size of the deadweight loss?
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
