Suppose that the demand curve for wheat is P = 100 - Q and the supply curve
Question:
Suppose that the demand curve for wheat is P = 100 - Q and the supply curve is P = Q.
Find the equilibrium price and quantity. Calculate consumer and producer surplus. Suppose that the government imposes a price cap of 30. Show the effect graphically and calculate the resulting consumer surplus, producer surplus and deadweight loss.
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The demand and supply equations are as below P 100Q or Qd 100P PQ or Qs P For equilibrium the quanti...View the full answer
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Related Book For 
Managerial Economics and Organizational Architecture
ISBN: 978-0073523149
6th edition
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
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