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1.) For this exercise you will need to first build a graph to these specifications: Draw a downward sloping demand curve with vertical intercept (0,150) and horizontal intercept (25,0). Draw a supply curve with vertical intercept (0,50) and with slope=4 i.e. the market equilibrium occurs at (10, 90).
a. Compute consumer, producer, and total surplus at the market equilibrium.
b. Label consumer surplus and producer surplus if the government imposes a price ceiling of $70, then compute deadweight loss.
c. Compute deadweight loss when the government imposes a price ceiling of $120.
2.) A drought in California destroys many grapes. As a result of the drought, what happens to the consumer surplus in the market for grapes and to the consumer surplus in the market for red wine? Draw the necessary graphs to represent this scenario and then write a sentence or two with your answer.
We need to use the scientific method when trying to develop new products and how to solve problems in general.
To understand how the distance vector algorithm in Table 20.1 works, let us apply it to a four-node internet as shown in Figure 20.32. Assume that all nodes are initialized first. Also assume that the algorithm is applied, one at a time, to each n..
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