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If QD=100-6P and QS=4p
I understand how to get the equilibrium of p=10 and Q=40 but I need to find consumer and producer surplus ...how does that get calculated?
b) How does the equilibrium change if a price floor of $12 is put in place? Calculate deadweight loss from this price floor.
c) Assume a tax of t=$2 is attached to each unit exchanged in market. calculate the new market equilibrium and the deadweight loss from this change. does the tax revenue make up for the lost surplus?
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