A Price Ceiling on Beef. The inverse demand and supply curves for beef are given by: P = 12 - 0.2Q^d and P = 0.2Q^s, where P is the price of beef in dollars per pound (USD/lb) and Q is the quantity of beef in million pounds (mil lb). The price ceiling is equal to $5/lb.
A. Explain the purpose of this policy: what is it intended to do?
B. Calculate the equilibrium price and quantity of beef in free markets.
C. Calculate Q^s and Q^d under the price ceiling.
D. Who is helped and who is hurt by this policy?

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The Answer of A Price Ceiling on Beef. The inverse demand and supply curves for beef are given by: P = 12 - 0.2Q^d and P = 0.2Q^s, where P is the price of beef in dollars per pound (USD/lb) and Q is the quantity of beef in million pounds (mil lb). The price ceiling is equal to $5/lb. A. Explain the purpose of this policy: what is it intended to do? B. Calculate the equilibrium price and quantity of beef in free markets. C. Calculate Q^s and Q^d under the price ceiling. D. Who is helped and who is hurt by this policy?