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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 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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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

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