Suppose now that the government decides to increase the number of quotas available to 72 units, but keeps the price support at the current level of $72.  calculate  the consumer surplus the producer surplus Deadweight loss which if the two options would be preferred by the producers? which of the two options would be preferred by a society as a whole?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Suppose now that the government decides to increase the number of quotas available to 72 units, but keeps the price support at the current level of $72. 
calculate 

the consumer surplus

the producer surplus

Deadweight loss

which if the two options would be preferred by the producers?

which of the two options would be preferred by a society as a whole?

 

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