100%(7)7 out of 7 people found this document helpful
This preview shows page 2 - 3 out of 3 pages.
3. Suppose that the demand curve for a restaurant chain’s new burger is given by P= 10 –2Q3and supply is P= 5 + 0.5Q3where price is in dollars and quantity is in hundred thousands of burgers. a. Find the equilibrium price and quantity.b. Calculate the consumer and producer surplus at the equilibrium price.c. Suppose that due to pressure from groups campaigning for increased availability of restaurant food for the poor, the federal government sets a price ceiling of $5.50. Calculate the new consumer and producer surplus.d. Calculate the deadweight loss associated with the price ceiling regulation.3.
Online Appendix: The Calculus of Consumer and Producer Surplus Chapter 3 3A-3⎡⎢ ⎣2Q _⎢ ⎣0.5Q _