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  3. suppose that the demand curve for wheat is q120 ...

Question: suppose that the demand curve for wheat is q120 ...

Question details

Suppose that the demand curve for wheat is

Q=120 - 10p

and the supply curve is

Q=10p

The government imposes a price ceiling of

p= $4 per unit

per unit.

a. How do the equilibrium price and quantity​ change?  ​(round quantities to the nearest integer and round prices to the nearest​ penny)

The equilibrium quantity without the price ceiling is

60

and the price without the price ceiling is

​$6.

The equilibrium quantity with the price ceiling is

40.

B) What effect does this ceiling have on consumer​ surplus, producer​ surplus, and deadweight​ loss?

The change in consumer surplus​ (CS) is ​$ _____ ​(round your answer to the nearest​ penny).

The change in producer surplus​ (PS) is ​$ _____(round your answer to the nearest​ penny).

The deadweight loss​ (DWL) is ​$ _____ (round your answer to the nearest​ penny).

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