Suppose that we have the following demand and supply functions. QX= 100 0.4PX QX= 40 +
Question:
QX = 100 – 0.4PX
QX = 40 + 0.2PX
a. What is the equilibrium market price for product X?
b. What is the equilibrium quantity demanded and supplied
c. Government imposes a price floor of $120. Analyze the impact of this floor on price, quantity demand and supplied. Would this price floor create a surplus or scarcity of this product in the market?
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a 100 4P 40 2P P 606 100 b Q ...View the full answer
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Related Book For 
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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