E202ProblemSet5.1 - 2. Refer to Problem 1. Suppose a...

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Problem Set Five Name _____________________ Chapter 7 1. Suppose the weekly demand and supply curves for used DVDs in Lincoln , Nebraska, are shown in the diagram. Calculate and graph : a. The weekly consumer surplus. b. The weekly producer surplus. c. The maximum weekly amount that producers and consumers in Lincoln (as a group) would be willing to pay to be able to buy and sell used DVDs in any given week.
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Unformatted text preview: 2. Refer to Problem 1. Suppose a coalition of students from Lincoln High School succeeds in persuading the local government to impose a price ceiling of $7.50 on used DVDs, on the grounds that local suppliers are taking advantage of teenagers by charging exorbitant prices....
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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