The demand and supply functions for basic cable TV in the local market are given as:
Q_D= 200,000 - 4,000P and Q_S = 20,000 + 2,000P. Calculate the consumer and producer surplus in this market. If the government implements a price ceiling of $15 on the price of basic cable service, calculate the new levels of consumer and producer surplus. Are all consumers better off? Are producers better off?

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The Answer of The demand and supply functions for basic cable TV in the local market are given as: Q_D= 200,000 - 4,000P and Q_S = 20,000 + 2,000P. Calculate the consumer and producer surplus in this market. If the government implements a price ceiling of $15 on the price of basic cable service, calculate the new levels of consumer and producer surplus. Are all consumers better off? Are producers better off?

The Demand and Supply Functions for Basic Cable TV in the Local