Use the following data to work Problems 6 and 7.

Price

(dollars per meal)

Quantity demanded

Quantity

supplied

(meals per week)

4

3,000

1,500

5

2,750

2,000

6

2,500

2,500

7

2,250

3,000

8

2,000

3,500

The table sets out the demand and supply schedules for college meals.

6.a.What is the market equilibrium?

Answer:

a.If the college put a price ceiling on meals at $7 a meal, what is the price students pay for a meal? How many meals do they buy?

Answer:

7.If the college put a price ceiling on meals at $4 a meal, what is the quantity bought, the shortage of meals, and the maximum price that someone is willing to pay for the last meal available?