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Question 2. The market supply and demand curves for a product are: QS=0.5P (supply curve) QD=60–2P...

Question 2. The market supply and demand curves for a product are:

QS=0.5P (supply curve)

QD=60–2P (demand curve)

where Q is the quantity of the product and P is the market price.

(1). Calculate the equilibrium price, equilibrium quantity and total social welfare. (10 points)

(2). Suppose that the market has changed from a perfectly competitive market to a monopoly market, calculate the new price–output combination and the total deadweight loss in the monopoly market. (10 points)

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