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The market for a box of POG's is defined by Qd-P and Qs.
a) Calculate perfectly competitive equilibrium, consumer surplus, and producer surplus. Include a detailed graph.
b) If a $2 per-unit tax were imposed, calculate new equilibriums, consumer surplus, producer surplus, government revenue, and deadweight loss. Include a detailed graph.
c) In an effort to support Canadian POG industries, the government imposes a price floor of $60. Calculate quantity supplied, quantity demanded, and producer surplus, consumer surplus, and deadweight loss under a worst case scenario. Include a detailed graph.
assume an economy has a production function ofy ak.35l.65nbspnbsp withnbsp a 1 k 100 and l 40.nbsp there is no
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