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# The market demand isQd= 15−P, and the market supply isQs=P/2. (a) Assume that the market is...

The market demand isQd= 15−P, and the market supply isQs=P/2.

(a) Assume that the market is perfectly competitive. What are the equilibrium price and quantity?

(b) Assume that the market is perfectly competitive. What is the equilibrium consumer,producer, and total surplus?

(c) In order to support producers by increasing prices, the government imposes a production quota ofQ= 4 units. What will the market clearing price be? At that price,what is the consumer, producer, and total surplus? What is the deadweight loss?

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