Consider the market for Cheese in Canada Demand and supply are given by QD= 13- 2P, and QS= 4P- 2 

Without any government intervention, what is the equilibrium price and quantity 

Show the demand, supply, and equilibrium on a graph

Calculate the consumer surplus, producer surplus and total surplus in this market 

Show the corresponding areas on the graph If the government imposes a minimum price of $2 per unit for cheese, what will be the new market quantity 

Does this policy create any shortage or surplus If yes, how much is it 

Disregard d If the government imposes a minimum price of $35 per unit for cheese, what will be the new market quantity 

Does this policy create any shortage or surplus If yes, how much is it

Calculate the consumer surplus, producer surplus and total surplus in this market Show the corresponding areas on your graph 

Explain the consequences of this policy 

Who benefits and who is hurt

Answer rating: 100% (QA)

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