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In the Market for Cotton, the Quantity Demanded and Quantity

question 52

Essay

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as QD = 400 - 250P and QS = 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q<sup>D</sup> = 400 - 250P and Q<sup>S</sup> = 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton.


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