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Suppose the Market for a Good Is Expressed as Follows

Question 130

Essay

Suppose the market for a good is expressed as follows:
Inverse demand: P = 200 - 2Q
Inverse supply: P = 2Q
What is the equilibrium if the government imposes a supply quota of 75 units?
What is the equilibrium if the government imposes a supply quota of 25 units?

Correct Answer:

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The market equilibrium with no quota is ...

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