Suppose the weekly quantity demanded (QD) for a good is given by the equation QD = 10,000 – 80P, and the weekly quantity supplied (QS) is given by QS = 20P, where P is the price per unit.
a. What is the equilibrium price and quantity?
b. When the market is in equilibrium, what are the values of consumer surplus, producer surplus, and total benefits?
c. Find the value of the deadweight loss (dollars per week) if a price ceiling of $80 is imposed on this market.
d. Find the value of the deadweight loss (dollars per week) if a price floor of $110 is imposed on this market.