ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Consider the market of apples. The market demand curve for apples is given by P = 100 -
0.5Qd and the market supply curve is given by P = 20+ 0.50s, where P is in dollars and Q
is in million apples. (Note: this is a continuous case.)
60
(a) The market equilibrium price is $_
(b) The market equilibrium quantity is
(c) The consumer surplus is $1600
(d) The producer surplus is $ 1600
_million.
Now, suppose the government imposes a quota of 60 million apples allowed to be sold.
(e) The market equilibrium price under quota is $_ 70
(f) The deadweight loss is $_ 200
million.
80
million apples.
_million.
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Transcribed Image Text:Consider the market of apples. The market demand curve for apples is given by P = 100 - 0.5Qd and the market supply curve is given by P = 20+ 0.50s, where P is in dollars and Q is in million apples. (Note: this is a continuous case.) 60 (a) The market equilibrium price is $_ (b) The market equilibrium quantity is (c) The consumer surplus is $1600 (d) The producer surplus is $ 1600 _million. Now, suppose the government imposes a quota of 60 million apples allowed to be sold. (e) The market equilibrium price under quota is $_ 70 (f) The deadweight loss is $_ 200 million. 80 million apples. _million.
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