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In: Economics
Using Supply and Demand to Analyze Markets — End of Chapter Problem The Reinheitsgebot is a...
Using Supply and Demand to Analyze Markets — End of Chapter Problem
The Reinheitsgebot is a set of laws established in the 1500s that regulate the production and sale of beer in Germany. Among its provisions, the edict set maximum prices that brewers could charge at various times of the year: "From Michaelmas to Georgi, the price for one [Bavarian Liter] is not to exceed one Pfennig Munich value." Cheap beer — this must be a great thing for consumers. Suppose that the demand for beer is given by ??=6,000−1,500? and the supply of beer is given by ??=−1,000+2,000?
c. With the price ceiling of 1‑Pfennig.
1.What is the producer surplus received by beer producers after the price ceiling is imposed? ______Pfennings
2. What is the consumer surplus received by beer drinkers after the price ceiling is imposed? ______ Pfennings
I solved c-2 ( 3650, 2915..etc) but incorrectly.. help me
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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Using Supply and Demand to Analyze Markets — End of Chapter Problem The Reinheitsgebot is a...
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Chapter Problem
The Reinheitsgebot is a set of laws established in the 1500s
that regulate the production and sale of beer in Germany. Among its
provisions, the edict set maximum prices that brewers could charge
at various times of the year: "From Michaelmas to Georgi, the price
for one [Bavarian Liter] is not to exceed one Pfennig Munich
value." Cheap beer — this must be a great thing for consumers....
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