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Unformatted text preview: 1) Suppose the market for a good is expressed as follows: Inverse demand: P = 200  2Q Inverse supply: P = 2Q What is the equilibrium if the government imposes a supply quota of 75 units? What is the equilibrium if the government imposes a supply quota of 25 units? 2) Suppose the market for potatoes can be expressed as follows: Supply: QS =  20 + 10p Demand: QD = 400  20p If the government sets a maximum price of $10 per unit, what will be the quantity demanded and quantity supplied? 3) Calculate the market supply curve if 20 producers have the first inverse supply curve, and 25 producers have the second inverse supply curve. P = 50 + 25*Qs (20 producers) P = 25 + 75*Qs (25 producers) Now calculate the market supply curve if 20 producers have the first inverse supply curve, and 25 producers have the second inverse supply curve. P = 50 + 25*Qs (20 producers) P = 25 + 75*Qs (25 producers) 4) During the winter of 19971998, the northeastern United States experienced warmer than usual conditions. The During the winter of 19971998, the northeastern United States experienced warmer than usual conditions....
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This note was uploaded on 05/02/2009 for the course ECON 300 taught by Professor Danbrown during the Spring '09 term at University of Delaware.
 Spring '09
 danbrown
 Microeconomics

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