Calculates the surplus analysis for quantity restrictions.
Author: shiroeExecutions: 357
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We will perform a surplus analysis regarding quantity-based regulations in a perfectly competitive market. We will calculate total surplus (social surplus) and deadweight loss (welfare loss). We assume that the demand and supply functions are linear equations. The forms are D = b + aP and S = f + cP.D and S represent the quantities demanded and supplied, respectively; b and f are constant terms; and a and c are coefficients of P.
Since this program handles economics-related problems, it performs validation checks on user input. If the input does not meet the requirements, no output will be generated.Negative prices and negative quantities are not supported. Therefore, the regulated quantity Q must be less than or equal to b. Equilibrium price and quantity must also be positive. Please be careful to avoid negative signs when entering data. Since some textbooks omit the prefix “inverse” from terms such as “inverse demand function,” please pay close attention to the form of the function and enter data carefully to avoid confusion.
| Total Surplus Before Regulation | (Before regulation. Social surplus) |
| Pre-regulation equilibrium price | |
| Pre-regulation equilibrium quantity | |
| (Post-regulation) Total Surplus | (Social Surplus) |
| Dead load | (Loss of welfare) |
R5 (2023). 09/24 (Sun) _"Surplus Analysis of Quantity Restrictions"_ ver. 002
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