The table gives the demand and supply schedules for an illegal drug.

a. If there are no penalties on buying or selling the drug, what is the price and how many units are consumed?
b. If the penalty on sellers is $20 a unit, what are the price and quantity consumed?
c. If the penalty on buyers is $20 a unit, what are the price and quantity consumed?

Transcribed Image Text:

Quantity demanded Quantity supplied Price dollars per unit) 50 60 70 80 90 (units per dayl 500 400 300 200 100 300 400 500 600 700