Question 6 A market has a demand function given by the equation Qd = 180 - 2 = -15 + P. The market is government-regulated with a price support production quota is a restriction on the quantity of the good tha %3D produce more than the quota)
Question 6 A market has a demand function given by the equation Qd = 180 - 2 = -15 + P. The market is government-regulated with a price support production quota is a restriction on the quantity of the good tha %3D produce more than the quota)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Question 6
A market has a demand function given by the equation Qd = 180 – 2P, and a supply function given by the equation Qs
= -15 + P. The market is government-regulated with a price support per unit and production quotas. (NOTE: A
production quota is a restriction on the quantity of the good that can be produced. Firms are not allowed to
%3D
%D
produce more than the quota)
(a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or
surpluses?
HINT: Sketch the supply and demand equations.
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce98e88c-afad-4d24-9489-05e3f992006b%2F19dd42c0-46a8-4b62-b965-dd69e0923fa0%2Feqdgkgy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 6
A market has a demand function given by the equation Qd = 180 – 2P, and a supply function given by the equation Qs
= -15 + P. The market is government-regulated with a price support per unit and production quotas. (NOTE: A
production quota is a restriction on the quantity of the good that can be produced. Firms are not allowed to
%3D
%D
produce more than the quota)
(a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or
surpluses?
HINT: Sketch the supply and demand equations.
Answer:
![(ii) deadweight loss,
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce98e88c-afad-4d24-9489-05e3f992006b%2F19dd42c0-46a8-4b62-b965-dd69e0923fa0%2Fousrlrp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(ii) deadweight loss,
Answer:
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