Answer to Question #62317 in Macroeconomics for Dominic

Question #62317
In a perfectly competitive market, the market demand curve is given by Qd = 200 -5P, and the market supply curve is given by Qd =35P. i. Find the equilibrium market price and quantity demanded and supplied in the absence of price controls. ii. Suppose a price ceiling of $2 per unit is imposed. What is the quantity supplied with a price ceiling of this magnitude? What is the size of the shortage created by the price ceiling? iii. Find the consumer surplus and producer surplus in the absence of a price ceiling. iv. Find the consumer surplus and producer surplus under the price ceiling.
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2016-10-07T11:18:03-0400

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