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Question: the market demand isqd 15p and the market supply isqsp2...

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The market demand isQd= 15−P, and the market supply isQs=P/2.

(a) Assume that the market is perfectly competitive. What are the equilibrium price and quantity?

(b) Assume that the market is perfectly competitive. What is the equilibrium consumer,producer, and total surplus?

(c) In order to support producers by increasing prices, the government imposes a production quota ofQ= 4 units. What will the market clearing price be? At that price,what is the consumer, producer, and total surplus? What is the deadweight loss?

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