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6.(15 points) Provide a commentary (a paragraph or two) on this analysis. (There is no specific answer to this part. You will be evaluated on how well you analyze this as an economist.) Please include the follow points in your discussion How would you describe these results of this analysis to a decision maker? How would you characterize the difference between the welfare impacts of the supply disruption as it occurred in 2005 with no price-gouging legislation and the welfare impacts with the legislation and prices held at the August 2005 level? Are there reasons beyond pure benefit-cost analysis and welfare calculations that might affect the choice of whether or not this type of legislation makes sense?
Cost-Benefit Analysis Fall 2017 Problem Set #1 15 Elasticity (demand) = - 0.44 Demand: Q(d) = 274.7 – 33.7*P Supply: Q(S0) = -190.7 +153.3*P Q(S1) = -252 + 153.3*P Net benefits were about -$4.507 billion (and varied with rounding errors) in question #4, and the rest of the analysis follows.

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