The below graph shows the market of computers. The equilibrium is at point E: Price $700...

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The below graph shows the market of computers. The equilibrium is at point "E": Price $700 650 600 550 500 450 400 350 300 0 7 8 9 E 10 11 12 13 S D 14 Quantity (millions per year) 1. The government intervenes by setting a minimum price to buy at of 600$. What type of Price control is it (price floor or price ceiling)? Is it biding? Explain your answer. 2. Will this create a surplus or shortage in the market? Calculate it (show your calculations). The below graph shows the market of computers. The equilibrium is at point "E": Price $700 650 600 550 500 450 400 350 300 0 7 8 9 E 10 11 12 13 S D 14 Quantity (millions per year) 1. The government intervenes by setting a minimum price to buy at of 600$. What type of Price control is it (price floor or price ceiling)? Is it biding? Explain your answer. 2. Will this create a surplus or shortage in the market? Calculate it (show your calculations).

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1 Government intervention by setting a minimum price of 600 is the price floor The price ... View the full answer