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Suppose the demand and supply of chickens is given by:
Qd = 20500 - 250p
Qs = 5000 + 100p
(a) Find the equilibrium price and quantity of chickens.
(b) Suppose a quota of 4000 chickens is imposed on the market. Find the new equilibrium price and quantity of chickens.
(c) Are consumers made better or worse off? What about producers?
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