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Suppose the market for cigarettes is characterized by the following information:

Demand: Qd = 70 - 2P

Supply: Qs = 40 + P.

Find the consumer and the producer surplus.

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Yusra AneesLv10
28 Sep 2019
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Related questions

Suppose the market for cigarettes is characterized by the followinginformation:
Qd = 70 - 5P [Demand] Qs = 3P - 10 [Supply]
Suppose the government imposes a sales tax of $2 per unit.
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ii) Calculate the tax revenue in the post-tax equilibrium.
iii) Calculate the change in consumer surplus due to the salestax.
iv) Calculate the change in producer surplus due to the salestax.
v) Calculate the Dead-Weight-Loss due to the sales tax.
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Given the demand and supply equations are QD = 950 - P and QS=2P-160, suppose the free trade (world) price is $200.
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Home's demand curve for wheat is P = 40 - 1/2 (QD) and supply is p = 10 + 1/2 (QS)

Determine the price of wheat in the absence of trade and economic surplus ( consumer surplus and producer surplus).

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