Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase the number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
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Chapter6: Elasticities
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Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase the number of quotas.

1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss.

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