** PLEASE LOOK AT BOTH IMAGES , THEY COMPLEMENT EACHOTHER ** The demand and supply for bicycles is given by: Qd = 1000-10P and supply is: Q² = 2P - 20 Now go back to original demand and supply. Suppose a price floor P=$90 is imposed. What is theConsumer Surplus and deadweight loss (DWL) after the price floor? (Hint: please draw a graphhere)a. CS=$5500; DWL-120b. CS=$500; DWL-$240c. CS=$820; DWL-$750d. CS=$500; DWL-$750e. None of the above

The consumer surplus is the area below the demand curve and above the market price. The less price…

Business

Economics

** PLEASE LOOK AT BOTH IMAGES , THEY COMPLEMENT EACHOTHER **

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

** PLEASE LOOK AT BOTH IMAGES , THEY COMPLEMENT EACHOTHER **

The demand and supply for bicycles is given by: Qd = 1000-10P and supply is: Q² = 2P - 20

Now go back to original demand and supply. Suppose a price floor P=$90 is imposed. What is the
Consumer Surplus and deadweight loss (DWL) after the price floor? (Hint: please draw a graph
here)
a. CS=$5500; DWL-120
b. CS=$500; DWL-$240
c. CS=$820; DWL-$750
d. CS=$500; DWL-$750
e. None of the above

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