Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive.The demand curve can be expressed as 
; the supply curve can be expressed as 
Quantity is expressed in millions of boxes per month.Now suppose that the federal government imposes a production quota on cigarettes of 30 million boxes per month.What is the change in producer surplus (per million boxes) associated with the quota?
Definitions:
Investors
Individuals or institutions that allocate capital with the expectation of receiving financial returns, often involving investment in stocks, bonds, or real estate.
Market For Loanable Funds
A financial market where borrowers and lenders interact to determine the interest rate and quantity of loans.
Interest Rates
The cost of borrowing money, typically expressed as a percentage of the amount borrowed over a specific period of time.
Budget Deficit
The financial situation where a government's expenditures exceed its revenues.
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