6.3 In a competitive market, the market demand curve is Q = 28 -2p and the market supply curve is 19 If you do not see the Solvertool, you need to load it first. Look up Solver in the Excel helpfacility for instructions. Qs = -8 + 2p. Use a spreadsheet toanswer the following questions.
a. Determine the quantity demanded and quantity supplied for p =$4, 5, 6, …, 14. Determine the equilibrium quantity and price.
b. For prices p = $4, 5, 6, …, 14, determine the consumersurplus. How does an increase in price affect the consumersurplus?
c. For prices p = $4, 5, 6, …, 14, determine the producersurplus. How does an increase in price affect the producersurplus?
d. Suppose the government limits the quantity traded in themarket to 6 units. Calculate the resulting deadweight loss.
PLEASE SHOW ANSWERS AND FORMULAS IN EXCEL
Perloff, Jeffrey M.. Managerial Economics and Strategy (p. 265).Pearson Education. Kindle Edition.
