Due to good weather, there is an increase in the demand for the goods. the new demand is Qd=190-2p. the government is trying to decide between two options. 1. maintain the number of quotas and let the market adjust or main the price support and increase the number of quotas. suppose the government decides to maintain the number of quotas and let the market adjust. calculate the: 1. price observed in the market 2. the consumer surplus 3. deadweight loss suppose now the government decides to increase the number of quotas available to 72 units, but it keeps getting the price support at the current level of $72? calculate: 1. the consumer surplus 2. producer surplus 3. deadweight loss Thanks
Due to good weather, there is an increase in the demand for the goods. the new demand is Qd=190-2p. the government is trying to decide between two options.
1. maintain the number of quotas and let the market adjust or main the price support and increase the number of quotas.
suppose the government decides to maintain the number of quotas and let the market adjust. calculate the:
1. price observed in the market
2. the
3.
suppose now the government decides to increase the number of quotas available to 72 units, but it keeps getting the price support at the current level of $72? calculate:
1. the
2. producer surplus
3. deadweight loss
Thanks
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