Find producer and consumer surplus

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Assume a perfectly competitive industry. Given the demand curve QD= 30 -2P(or P = 15-(1/2)QD) and the market supply curve QS= P find producer and consumer surplus. Consider the following three situations

a) If there is a price ceiling set $2 below the equilibrium price find producer and consumer surplus as well as the deadweight loss, if any.

b) If there is a market quota at 4 units below the equilibrium quantity find producer and consumer surplus as well as the deadweight loss, if any.

c) If a tax of $3 per unit is imposed on firms how is the burden of the tax shared between consumers and firms?

Reference no: EM131095015

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