If demand for toys is QD = 500 – 10P and supply is Qs = 100 +10P, answer the following questions using calculus:
a. If the government imposes a restriction that price per toycannot exceed $15, calculate the ΔCS, ΔPS, and DWL from the priceceiling.
b. If the government imposes a restriction that price per toycannot be lower than $18, calculate the ΔCS, ΔPS, and DWL from theprice floor.
c. If the government promises toy producers a price of $25 perunit and will buy up any excess supply to support that price,calculate the ΔCS, ΔPS, and DWL from the price support.
d. If the government promises toy producers a price of $22 perunit and will pay the difference between $22 and the priceproducers receive from consumers, calculate the ΔCS, ΔPS, and DWLfrom the price support.
