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Q = -40t3p and a=80-P Calculate ph and Qt in the narke seepply 0:4 Here are the and demand carnes Jes a competitive market b)

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Answer #1

a) Setting QD=QS

-40+3P = 80-P

3P+P = 80+40

P = 120/4 = 30

Q = -40+3*30 = 50

b) CS = 0.5*50*(80-50) = 750

PS = 0.5*50*(30-0) = 750

TS = CS+PS = 1500

c) An effective price ceiling occurs when it is placed below the equilibrium price so it can be any value below P=30

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