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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
a. 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.
b. 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
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The demand and supply functions for basic cable TV in the local market are given as:
Q(D) = 200,000...
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