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The Demand and Supply Functions for Pizza in the Local

question 162

Essay

The demand and supply functions for pizza in the local market are: QD = 20,000 - 833P and
QS = 5,000 + 417P. Calculate consumer and producer surplus in this market. If the minimum wage is increased by $2 per hour, the new market supply curve becomes: Q'S = 4,000 + 417P. Calculate the loss in consumer and producer surplus in the pizza market due to this change.


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Indignation in the presence of an injustice or violation of moral decency.

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