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Given a demand function of P = 102 - 6Qd and supply of P = 36 +4Qs, the utility function U = Qx0.6Qy(1-0.6) and the consumer budget 185 = 30x + 6Qy along with the firm production function Q = K0.6 0.8 with the isocost 236 19K + 8L. The economic growth factor is 1.4. What is the societal cost from a binding price control at 80? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).

Given a demand function of P = 102 - 6Qd and supply of P = 36 +4Qs, the utility function U = Qx0.6Qy(1-0.6) and the consumer budget 185 = 30x + 6Qy along with the firm production function Q = K0.6 0.8 with the isocost 236 19K + 8L. The economic growth factor is 1.4. What is the societal cost from a binding price control at 80? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).

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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Given a demand function of P = 102 - 6Qd and supply of P = 36 + 4Qs, the utility function U = Qx0.6Qy(1-0.6) and the consumer budget 185 = 3Qx + 6Qy along with the firm production function Q = K0.6₁0.8 with the isocost 236 19K + 8L. The economic growth factor is 1.4. What is the societal cost from a binding price control at 80? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
Transcribed Image Text:Given a demand function of P = 102 - 6Qd and supply of P = 36 + 4Qs, the utility function U = Qx0.6Qy(1-0.6) and the consumer budget 185 = 3Qx + 6Qy along with the firm production function Q = K0.6₁0.8 with the isocost 236 19K + 8L. The economic growth factor is 1.4. What is the societal cost from a binding price control at 80? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
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