Given the demand and supply functionsdemand qd 2000, Ask an Expert

Economics

Given the Demand and Supply functions:

Demand: Qd = 2000 –12P

Supply: Qs = -400 + 8P

a. Draw the demand and supply curve. Identify Consumer and Producer Surplus in the graph.

b. Find consumer surplus, producer surplus, and social welfare.

c. The government sets a price floor Pf = 150. Is the price floor effective? What is Quantity Traded?

d. Find the new consumer, producer surplus, social welfare and deadweight loss.

e. Redo part (c) and (d) with Price floor = 100

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91951235

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