Demand in a Perfectly Competitive Market Is Q = 100

question 41

Essay

Demand in a perfectly competitive market is Q = 100 - P.Supply in that market is Q = P - 10.What is the market equilibrium price and quantity? Given that price and quantity,how much consumer surplus,producer surplus,and deadweight loss is there? If the government imposes a $40 price ceiling,what quantity will be produced and sold? Assuming that those who value the good the most actually get after the ceiling is imposed,how much consumer surplus,producer surplus,and dead-weight loss is there?

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