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Additional Problem #3 Quota Given the following Demand and Supply functions: Qd = 500 – 20P            ...

Additional Problem #3 Quota

Given the following Demand and Supply functions:

Qd = 500 – 20P             Qs = 80P – 400

  1. Calculate quantity, price, consumer surplus, producer surplus, total surplus and dead-weight loss at equilibrium.
  2. Calculate quantity, price, consumer surplus, producer surplus, total surplus and dead-weight loss at a quota of 240 units.
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Answer #1

Qd = 500-2OP ; Qs = sop - 400 At equilibrium QaQ 500-20l = 8op - 100 900 = loop P=9 - Q = soo-2009) = 320 when ad-0, P- 500 -

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