Suppose demand and supply are given by Qd 60
Suppose demand and supply are given by Qd = 60 - P and Qs = P - 20.
a. What are the equilibrium quantity and price in this market?
b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $ 50 is imposed in this market.
c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $ 32 is imposed in this market. Also, determine the full economic price paid by consumers.

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