he mai equations: Demand: P =22 - Q Supply: P = -2 + Q %3D where P is the price in dollars per unit and Q is the quantity in thousands of units. a The equilibrium quantity is thousand hamburger
he mai equations: Demand: P =22 - Q Supply: P = -2 + Q %3D where P is the price in dollars per unit and Q is the quantity in thousands of units. a The equilibrium quantity is thousand hamburger
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:The market for hamburgers can be described by the tollowing
equations:
Demand: P = 22 - Q
Supply: P = -2 + Q
where P is the price in dollars per unit and Q is the quantity in
thousands of units.
a. The equilibrium quantity is
thousand hamburgers
and the equilibrium price is $
b. Consumer surplus equals $
c. Deadweight loss is equal to $
Now suppose the government imposes a price floor = $14 to reduce
hamburger consumption (people are becoming unhealthy eating too
many burgers).
d. After this price floor, the new quantity bought and sold will be
burgers.
e. Consumer surplus will now be $
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