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Question: 1 here is a supply and a demand schedule for...

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1. Here is a supply and a demand schedule for coconuts P 1 2345 6 78910 11 Qs 200 300 400 ao 1200 1100 1000 900 800 700 600 500 400 300 200 500 600 700 800 900 1000 110 1200 Now imagine that there is a price ceiling on coconuts at $4 and the coconuts are allocated by waiting in line. If everyone has a value of time equal to $0.20/minute, how long (in time) will the line be? What will the total cost of that line be? Show this on a graph along with consumer and producer surplus, deadweight loss and shortage or surplus (which one is it?) 2. On two graphs, show the effect of a binding price floor in the short run and the long run. Indicate the shortage or surplus (which one is it?) and deadweight loss on each graph. Is the effect larger in the long run or in the short run?

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