The supply and demand curves of a product are shown in Figure 6.13. Approximate the difference in the total gains from trade if the price is artificially increased from the equilibrium price of p = 95 to p*= 110. p(Sunit) 200 888888888 180 160 140 120 100 50 O(a) $137.50 Ⓒ (b) $3,250 O (c) $4,675 100 150 200 Figure 6.13 (quantity)

The supply and demand curves of a product are shown in Figure 6.13. Approximate the difference in the total gains from trade if the price is artificially increased from the equilibrium price of p = 95 to p*= 110. p(Sunit) 200 888888888 180 160 140 120 100 50 O(a) $137.50 Ⓒ (b) $3,250 O (c) $4,675 100 150 200 Figure 6.13 (quantity)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assuming a $9 per unit subsidy is implemented, the new quantity traded will be ______. a) 12 b) 14 c) 16 d) 19 e) 21 f) 22.5 g) 45 h 66 i) 82.5 j) 148.5 k) 171
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