Due to good weather ,there is an increase in the demand for the goog.the new demand equation is Qd = 190 - 2P. The government is trying to decide between two options Maintain the hue of quotas and let the market adjust or Maintain the price support and increase the number of quotas Suppose that the government decides to maintain the number of quotas and let the market adjust Calculate the price observed in the market The consumer surplus The producer surplus Deadweight loss

Due to good weather ,there is an increase in the demand for the goog.the new demand equation is Qd = 190 - 2P. The government is trying to decide between two options Maintain the hue of quotas and let the market adjust or Maintain the price support and increase the number of quotas Suppose that the government decides to maintain the number of quotas and let the market adjust Calculate the price observed in the market The consumer surplus The producer surplus Deadweight loss

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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