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Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase the number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.

Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase the number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.

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 the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase the number of quotas.

1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.

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