Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is:
Q^D = 10 - 2.25P
and the market supply curve is:
Q^S = -10 + 2.75P
where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons.

Question

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is:
Q^D = 10 - 2.25P
and the market supply curve is:
Q^S = -10 + 2.75P
where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is: Q<sup>D</sup> = 10 - 2.25P and the market supply curve is: Q<sup>S</sup> = -10 + 2.75P where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons.

Quizplus · Accepted Answer

The Answer of Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is: Q^D = 10 - 2.25P and the market supply curve is: Q^S = -10 + 2.75P where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons.

Suppose That a Local Government Has Imposed a Quota of 0.5