In: Economics

# Consider the following supply and demand equations: Supply: p = 550 + 3q Demand: p =...

Consider the following supply and demand equations: Supply: p = 550 + 3q

Demand: p = 750 − 2q

Show your work as you respond to the following questions.

(a) What is the market equilibrium? (5%)

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

(d) The government imposes a price floor of 706. What is Total Surplus? What is the Deadweight Loss? (10%)

(e) Instead, the government imposes a price floor of 650. What is Total Surplus? What is the Deadweight Loss? (10%)

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