Question: a. Just to review: Back in Chapter 8 on price ceilings and floors, we illustrated price ceilings with a horizontal line below the equilibrium price.

a. Just to review: Back in Chapter 8 on price ceilings and floors, we illustrated price ceilings with a horizontal line below the equilibrium price. Did price ceilings create surpluses or shortages?
b. The horizontal line in Figure 9.1 doesn’t represent a surplus or a shortage. What does it represent?
c. Figure 9.1 considers the case of a country that can buy as many semiconductors as it wants at the same world price. Why do people in this country only buy QdFree trade units? Why don’t they buy more of this inexpensive product?

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