• The demand for a good is QD = 160-2P with P being the price and QD denoting the quantity demanded. The supply for the good is Qs = -40 + 2P with Qs representing the quantity supplied. The production of the good creates a marginal external cost P = Q. • Q6. Determine the equilibrium quantity in the absence of any regulation. • Q7. Determine the consumer surplus in the absence of any regulation. • Q8. Determine the producer surplus in the absence of any regulation. • Q9. Determine the total external cost in the absence of any regulation. • Q10. Determine the efficient (or social) equilibrium quantity. • Q11. Determine the deadweight loss associated with the negative externality.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Plz do the last 3 parts only In 30 min
Given:
Demand: Q=160 - 2P
Supply: Q=-40 +2P
External Cost: P = Q
Part A
Without regularization, the market equilibrium
condition is:
=> Demand = Supply
=> 160-2P = -40 +2P
=> 4P = 200
=> P = 50
From the demand curve : Q=160 -2P = 160 -2*50=
160 - 100 = 60 (equilibrium quantity) - it is
corresponding to point A in the diagram below
Part B
without regulation, Consumer surplus is given by
the area ABC
= (1/2)*60* (160-50) = 3300 (ans.)
Part C
Without regulation, the producer surplus is given
as:
= (1/2)*60* (50-20) = 900 (ans.)
Price
160 B
50
20 P
Solution
Part A : 60
Part B: 3300
Part C: 900
60
$1
D1
Quantity
Transcribed Image Text:Given: Demand: Q=160 - 2P Supply: Q=-40 +2P External Cost: P = Q Part A Without regularization, the market equilibrium condition is: => Demand = Supply => 160-2P = -40 +2P => 4P = 200 => P = 50 From the demand curve : Q=160 -2P = 160 -2*50= 160 - 100 = 60 (equilibrium quantity) - it is corresponding to point A in the diagram below Part B without regulation, Consumer surplus is given by the area ABC = (1/2)*60* (160-50) = 3300 (ans.) Part C Without regulation, the producer surplus is given as: = (1/2)*60* (50-20) = 900 (ans.) Price 160 B 50 20 P Solution Part A : 60 Part B: 3300 Part C: 900 60 $1 D1 Quantity
• The demand for a good is QD = 160-2P with P being the price and Qp
denoting the quantity demanded. The supply for the good is Qs = -40 +
2P with Qs representing the quantity supplied. The production of the good
creates a marginal external cost P = Q.
• Q6. Determine the equilibrium quantity in the absence of any regulation.
• Q7. Determine the consumer surplus in the absence of any regulation.
Q8. Determine the producer surplus in the absence of any regulation.
• Q9. Determine the total external cost in the absence of any regulation.
Q10. Determine the efficient (or social) equilibrium quantity.
Q11. Determine the deadweight loss associated with the negative
externality.
●
31
Transcribed Image Text:• The demand for a good is QD = 160-2P with P being the price and Qp denoting the quantity demanded. The supply for the good is Qs = -40 + 2P with Qs representing the quantity supplied. The production of the good creates a marginal external cost P = Q. • Q6. Determine the equilibrium quantity in the absence of any regulation. • Q7. Determine the consumer surplus in the absence of any regulation. Q8. Determine the producer surplus in the absence of any regulation. • Q9. Determine the total external cost in the absence of any regulation. Q10. Determine the efficient (or social) equilibrium quantity. Q11. Determine the deadweight loss associated with the negative externality. ● 31
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