The below graph shows the market of air tickets per month with no Government intervention What are the Price and Quantity of Equilibrium? Calculate total Surplus at equilibrium. The government intervenes by setting a maximum price to be sold of 350$. What type of Price control is it? Who is it supposed to gain and lose from this intervention?  Will this create a surplus or shortage? Calculate

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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The below graph shows the market of air tickets per month with no Government intervention

  1. What are the Price and Quantity of Equilibrium?
  2. Calculate total Surplus at equilibrium.
  3. The government intervenes by setting a maximum price to be sold of 350$. What type of Price control is it? Who is it supposed to gain and lose from this intervention? 
  4. Will this create a surplus or shortage? Calculate 
Ticket Price
S
$700
650
600
550
E
500
450
400
350
300
8
6.
10 11
12
13
14
Quantity of tickets (millions per year)
Transcribed Image Text:Ticket Price S $700 650 600 550 E 500 450 400 350 300 8 6. 10 11 12 13 14 Quantity of tickets (millions per year)
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