Question

Supply and demand in the regional vegetable market can be described with the following equations:

Qo = 4P - 80
Qd = 100 - 2P

The amount (Q) is expressed in quintals and the P in dollars per quintal.

to. What are the equilibrium conditions in the vegetable market?

b. Calculate the consumer surplus, the producer surplus and the total surplus in the vegetable market.

c. Which economic sector (consumers or producers) would have the greatest weight if the government prohibited the consumption of vegetables in the population?

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Answer #1

C)since it is observed that the vegetable market is relatively inelastic in nature as vegetable is a necessity if a consumption of vegetables is seen then the consumers should be more affected.

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