Demand and supply curves and determine equilibrium price

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Reference no: EM131097971

Suppose the demand and supply of chickens is given by:

(Qd = quantity demanded, Qs = quantity supplied, p = price)

Qd = 20,500− 250p

Qs = 5000 + 100p

a) Graph the demand and supply curves and determine the equilibrium price and quantity.

b) Suppose a quota of 4000 turkeys is imposed. What will be the new equilibrium price?

c) Show the loss to consumers? What is the net gain, if any, to producers?

Reference no: EM131097971

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