Compute the consumer surplus, the producer surplus

Reference no: EM133288093

Question: The demand and supply functions of wheat is given as P = 20 - 0.05Q and P = 10 + 0.05Q, respectively. Solve for the equilibrium price and quantity in the wheat market. If the government implement a price floor of $18 per unit of wheat to help the wheat farmer, compute the consumer surplus, the producer surplus and the deadweight loss in the wheat market. Discuss your answers with a suitable wheat market diagram.

Reference no: EM133288093

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