Suppose demand and supply are given by Qd = 50 P and Qs = P
Question:
a. What are the equilibrium quantity and price in this market?
b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market.
c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in this market. Also, determine the full economic price paid by consumers.
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a Equating quantity supplied and quantity demanded yields the equation Solving for P yields the equi...View the full answer
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Related Book For
Managerial Economics and Business Strategy
ISBN: 9780071267441
7th Edition
Authors: Michael R. baye
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