Calculate the equilibrium price and quantity

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Reference no: EM131173871

Suppose initially the supply and demand for a product is as follows:

Demand: P=15 - 2Q Supply: P=2+3Q

Calculate the equilibrium price and quantity.

Assume that a price ceiling of $7 is appied to this market. What is the deadweight loss (loss of social welfare) that results in the interruption of market mechanism? Calculate the dollar amount. Draw a graph to show the effects.

Reference no: EM131173871

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