Consider a market where demand and supply satisfy the following equations Qd = 12 – 2 P, QS = 2P. a)Find the current equilibrium price and quantity. b)What is the total producer surplus if the market is in equilibrium? The government is considering a minimum price policy to increase producer surplus. c)Explain by means of graphs how the introduction of a price floor can increase producer surplus. d)Find the (optimal) price floor that maximizes producer surplus.   hi, can you answer part c and part d for this question please, thanks

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Consider a market where demand and supply satisfy the following equations
Qd = 12 – 2 P,
QS = 2P.
a)Find the current equilibrium price and quantity.


b)What is the total producer surplus if the market is in equilibrium?


The government is considering a minimum price policy to increase producer surplus.
c)Explain by means of graphs how the introduction of a price floor can increase producer surplus.

d)Find the (optimal) price floor that maximizes producer surplus.

 

hi, can you answer part c and part d for this question please, thanks 

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