In: Economics

# Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...

Consider the following supply and demand equations:

Supply: p = 10 + q

Demand: p = 100 − 2q

(a) What is the market equilibrium price and quantity? (5%)

(b) What is the Total Surplus at equilibrium? (5%)

(c) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus?

D）Calculate the Consumer Surplus under a price ceiling of ¯p = 20.

(e) What is the Deadweight Loss under a price ceiling of ¯p = 10?

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