3 Suppose demand and supply are given by: 100 – Qa 10 + 2Qa P P a. Find equilibrium price and quantity. b. What is the effect of a price ceiling set at P=60? c. What is the effect of a price floor set at P=60? d. What is the effect of a price ceiling set at P=80? e. What is the effect of a price floor set at P=80? f. Draw a diagram showing your answers in a, b, and e.

3 Suppose demand and supply are given by: 100 – Qa 10 + 2Qa P P a. Find equilibrium price and quantity. b. What is the effect of a price ceiling set at P=60? c. What is the effect of a price floor set at P=60? d. What is the effect of a price ceiling set at P=80? e. What is the effect of a price floor set at P=80? f. Draw a diagram showing your answers in a, b, and e.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 7SCQ: What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of...

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