I need help solving this problem please? Calculate The consumer surplusThe producer surplusDeadweight loss Question 6A market has a demand function given by the equation Qd = 180 - 2P, and a supply function given by theequation Qs = -15 + P. The market is government-regulated with a price support per unit and productionquotas. (NOTE: A production quota is a restriction on the quantity of the good that can be produced.Firms are not allowed to produce more than the quota)(a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages orsurpluses?HINT: Sketch the supply and demand equations.Answer:36Considering the price support and the quota, calculate(1) the consumer surplus,Answer: 324 Suppose now that the government decides to increase the number of quotas available to 72 units, but it keepsthe price support at the current level of $72.d) Calculate(1) the consumer surplus,Answer: 297(1) the producer surplus,

Consumer Surplus: It refers to the level of welfare that consumers get, or it is the difference…

Answered: Suppose now that the government decides…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A market has a demand function given by the equation Qd = 180 – 2P, and a supply function is given by the equation Qs = −15+ P. The market is government-regulated, with price support per unit and production quotas. (NOTE: A production quota restricts the quantity of the good that can be produced. Firms are not allowed to produce more than the quota) (a) If the price is $72 per unit, what production quota is needed to ensure no shortages or surpluses? (HINT: Sketch the supply and demand equations.) (b) Considering the price support and the quota, calculate (i) the consumer surplus, (ii) the producer surplus, (iii) deadweight loss,

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Suppose now that the government decides to increase the number of quotas available to 72 units, but it keeps the price support at the current level of $72. d) Calculate (1) the consumer surplus,