Suppose that a consumer’s demand curve for medical care is Q D = −2P + 14 and that the supply of medical care is Q s = 1.5P. Find the following:
(a) The equilibrium price and quantity of medical care
(b) The Consumer Surplus
(c) The Producer Surplus
(d) The magnitude of dead-weight loss if the government limits production to 3 units.

Answer rating: 100% (QA)

b At ei as Price a The Qs equilibrium Qd 2P14 14 B 4A O P In case 2P14 15 P B ... View the full answer