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 produce more than the quota) %3D (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: 36 Considering the price support and the quota, calculate ) the consumer surplus, Answer: 324
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 produce more than the quota) %3D (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: 36 Considering the price support and the quota, calculate ) the consumer surplus, Answer: 324
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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 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:
36
Considering the price support and the quota, calculate
() the consumer surplus,
Answer:
324](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c4ddca2-1514-4b6d-8bac-30f29d5cca83%2F61a14031-0408-4d4a-919d-30df051a2dc0%2Fte7sn4l_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 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:
36
Considering the price support and the quota, calculate
() the consumer surplus,
Answer:
324
![Answer:
324
(ii) the producer surplus,
Answer:
1404
(ii) deadweight loss,
Answer: 252](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c4ddca2-1514-4b6d-8bac-30f29d5cca83%2F61a14031-0408-4d4a-919d-30df051a2dc0%2Fajmu55a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Answer:
324
(ii) the producer surplus,
Answer:
1404
(ii) deadweight loss,
Answer: 252
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