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Consider a Competitive Market for Apples

Question 167

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Consider a competitive market for apples.Demand is given by the relation: Qd = 100 - 6P,whereas supply is given by the relation Qs = 50 + 4P.Evaluate the free market by finding the equilibrium price and quantity.Evaluate the market if government intervention imposes a price of $4,and then evaluate the market if government intervention imposes a price of $6.

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Equilibrium occurs when quantity demande...

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