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Q. Market demand and supply functions for imported beer are: Qd = 4, 800 - 40P and Qs = -1, 200 + 20P. To encourage consumption of domestic beer (such as from new Fort Collins brewery in question 6 above), Congress has imposed a quota of 600 units of imported beer.
a. Estimate aggregate consumer and producer surplus before quota.
b. Estimate new consumer and producer surplus after quota.
c. Estimate deadweight loss from quota.
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