A. Calculate: the consumer surplus the producer surplus dead weight loss B. Which of the two options listed in the photo would be preferred by the producers? Which of the two options listed in the...

A. Calculate:

• the consumer surplus


• the producer surplus


• dead weight loss

B.

• Which of the two options listed in the photo would be preferred by the producers?


• Which of the two options listed in the photo would be preferred by society as a whole?

Extracted text: Suppose now that the government decides to increase the number of quotas available to 72 units, but it keeps the price support at the current level of $72.


Extracted text: Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190 – 2P. The government is trying to decide between two options: • Maintain the number of quotas and let the market adjust, or Maintain the price support and increase the number of quotas. Suppose that the government decides to maintain the number of quotas and let the market adjust. (c) Calculate the (1) price observed in the market,