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Solution1. Suppose that the demand curve for a particular high-end designer purse in a medium-sized city is given by P= 600 –0.01Q2and supply is P= 100 + 0.04Q2, where price is in dollars and quantity is in numbers of purses. a. Find the equilibrium price and quantity.b. Calculate the consumer and producer surplus at the equilibrium price..Q2)dQ_2)dQQ _2. Suppose that the supply and demand curves for the designer purse in Problem 1 are given as above. Fur-
ther suppose that the wife of a local politician owns one of these purses and wants to make sure that its particular style remains relatively exclusive. She convinces her husband to institute a quantity regulation (quota) at 30. a. Calculate the new consumer and producer surplus values after this intervention.