1. Assume: Q(S) = 2P; Q(D) = 300 -P 1. What is the equilibrium P and...

 

Transcribed Image Text:

1. Assume: Q(S) = 2P; Q(D) = 300 -P 1. What is the equilibrium P and Q? 2. If there is a price ceiling of $90, is it binding? Will there be a shortage or surplus, and how much? 3. What if there is price floor of $90? 1. Assume: Q(S) = 2P; Q(D) = 300 -P 1. What is the equilibrium P and Q? 2. If there is a price ceiling of $90, is it binding? Will there be a shortage or surplus, and how much? 3. What if there is price floor of $90?

Answer rating: 100% (QA)

Solving for Equilibrium Price and Quantity 1 Equilibrium P and Q We can find the equilibrium price P and quantity Q at the point where supply S equals ... View the full answer