Calculate the consumer and producer surplus in market

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Reference no: EM13976439

The demand and supply functions for basic cable TV in the local market are given as: Q(D) = 200,000 - 4,000P and Q(S) = 20,000 + 2,000P

a. Calculate the consumer and producer surplus in the market.

b. If the government implements a price ceiling of $15 on the price of basic cable service, calculate the new levels of consumer and producer surplus.

Reference no: EM13976439

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