3. If we know that the market equilibrium price is $45 and the equilibrium quantity is 3, check whether the market equilibrium yields the optimal welfare in the market. 4. If the government intervenes in the market, what is the effect of this intervention on the optimal welfare in the market?

3. If we know that the market equilibrium price is $45 and the equilibrium quantity is 3, check whether the market equilibrium yields the optimal welfare in the market. 4. If the government intervenes in the market, what is the effect of this intervention on the optimal welfare in the market?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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