economic

The demand and supply equations for the wheat market are:

Demand: P=20−0.02Q Supply: P=0.04PSupply: P=0.04Q

• a. Calculate the equilibrium price and quantity.
• b. What are the consumer surplus and the producer surplus at the market equilibrium?
• c. If a price floor of 15 TL is imposed, calculate the consumer and producer surpluses and the deadweight loss.

2.

The demand and supply equations for the orange market are:
Demand: P=30−0.03QDemand: P=30−0.03Q
Supply: P=0.05QSupply: P=0.05Q

• a. Find the equilibrium price and quantity.
• b. Determine the consumer surplus and producer surplus at equilibrium.
• c. Suppose the government sets a price ceiling of 12 TL. Calculate the new surpluses and the deadweight loss.