In: Economics

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

1. Consider the following supply and demand equations:

Supply: p = 10 + q

Demand: p = 100 − 2q

Show your work as you respond to the following questions.

1. What are the market equilibrium price and quantity? (5%)
2. What is the Total Surplus at equilibrium? (5%)
3. The government enacts a price ceiling at ¯p = 50. What is the Total Surplus? (5%)
4. Calculate the Consumer Surplus under a price ceiling of ¯p = 20. (5%)
5. What is the Deadweight Loss under a price ceiling of ¯p = 10?

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Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions.1 (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...
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Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions. (a) What is the market equilibrium price and quantity? (b) What is the Total Surplus at equilibrium? (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...
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