Use the following chart to answer the questions below.
a. Assume demand is D and supply is S ^o . If the ceiling price is set at $ 6 how much is the shortfall produced?
b. Assume demand is D and supply is S ^o . If the price floor is set at $ 12, how much is the surplus?
c. Assume demand is D and supply is S ^o so the equilibrium price is $ 10. If excise tax is $ 6, what will happen to the equilibrium price paid by consumers?

Transcribed Image Text:

so 14 12 10 4 2 х 2 3 4 so 14 12 10 4 2 х 2 3 4