In Figure, a price ceiling for maple syrup caused a shortage, which led to a black market price ($4) higher than the initial equilibrium price ($3). Suppose that the price ceiling remains in place for years. Over time, some maple syrup firms go out of business. With fewer firms, the supply curve in the figure shifts leftward by 10,000 bottles per month. After the shift in the supply curve:

a. What is the shortage caused by the $2 price ceiling?

b. If all of the maple syrup is once again purchased for sale on the black market, how will the black market price be greater, less than, or the same as that in Figure? Explainbriefly.

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Price per Avocado $1.50 A 3. Elasticity of demand for the mowe from A to Bis 20%/40%-0.5 1.00- 1. Using the midpoint formula, the percentage drop in price is 50.50/S1.25 0.40 or 40% ,500 5,500 Quantity of Avocados per Week 1,000 / 5,000-0.2 or 20%