SIS 2016

Posted by soimmoi on Oct 19, 2017; 7:35am
URL: http://discussion-forum.276.s1.nabble.com/SIS-2016-tp7608190.html

2015 Qd = max(0, 3000- 4P)
Qs = max (0, -1000 +12 P)
PRICE CIELING = 100
DWL=?
a)500000/3
b)620000/3
c) 700000/3
d) none of these

I'm getting d
At P =100  Qs= 200
Qd= 2600
and when we put Q= 200 in Qd then we get P= 700
so, Dwl = 1/2 (700-100) (2000-200)
2000 is the equilibrium  qty wihout any price ceiling is my answer correct?