Question 7: Use exhibit 4-8, answer these questions a- d:(8 points)

a)Choose a price that would be considered a "price floor".

b) Give at least two reasons why some economists disagree with imposition of a price ceiling; assume product x is gasoline. Briefly explain your answer.

c) What is producer surplus at 100th unit of output.

d) Give an example of a good or a service that might rationalize imposition of a price floor. Why should price of such good be controlled?

Exhibit 4-8