10PD QS = 10PS a. What is the equilibrium price and quantity? Suppose the college wants to discourage cell phones on campus and makes all students with a cell phone pay a fee of $10 per phone. B. What is the new equilibrium quantity? C. What price will consumers pay? D. What price will suppliers receive? 2. (8) Suppose a production function has the form Q = L.25K.25, where Q is the quantity produced, L is the labor input, and K is the capital input. A. What is the technical rate of substitution when L = K = 30? B. Does this production function have increasing, decreasing, or constant returns to scale?