1. A market has a demand function given by the equation Qd = 180 – 2P, and a supply function given by the equation Qs = -15 + P. The market is government -regulated with a price support per unit and production quotas. If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses? Considering the price support and the quota, calculate: a. Deadweight loss

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter16: Public Goods And Public Choice
Section: Chapter Questions
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1. A market has a demand function given by the equation Qd = 180 – 2P, and a supply function given by the equation Qs = -15 + P. The market is government -regulated with a price support per unit and production quotas. 

If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses?

Considering the price support and the quota, calculate: 

a. Deadweight loss

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