Find the equilibrium price and quantity

Assignment Help Business Economics

Reference no: EM131097964

Consider the housing market described by these equations:

(P = price)

Qd = 10 – P (Qd = quantity demanded)

Qs = 2 + P (Qs = quantity supplied)

a. Graph the supply and demand curves for housing.

b. Find the equilibrium price and quantity.

c. Calculate the consumer and producer surplus.

d. Now suppose that a rent control price of $3 is imposed on the market. Find the new equilibrium price and quantity, and the new consumer and producer surplus.

e. Using your answers in b and c, how have consumers and producers been affected?

f. Show the deadweight loss.

Reference no: EM131097964

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