Suppose the demand and supply of chickens is given by: Qd = 20500 250p Qs = 5000 + 100p (a)Find the equilibrium price and quantity of chickens.

. Suppose the demand and supply of chickens is given by:

Qd = 20500 − 250p

Qs = 5000 + 100p

(a)Find the equilibrium price and quantity of chickens.

(b) Suppose a quota of 4000 chickens is imposed on the market. Find the new equilibrium price and quantity of chickens.

(c) Are consumers made better or worse off? What about producers?

 
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