A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from (0, 0) to (24, 24), and a demand curve, D, descending linearly from (0, 24) to (24, 0). The curves intersect at (12, 12). Refer to Figure 6-18. If the government set a price floor at $17, would there be a shortage or surplus, and how large would be the shortage/surplus?

A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from (0, 0) to (24, 24), and a demand curve, D, descending linearly from (0, 24) to (24, 0). The curves intersect at (12, 12). Refer to Figure 6-18. If the government set a price floor at $17, would there be a shortage or surplus, and how large would be the shortage/surplus?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter16: Public Goods And Public Choice

Section: Chapter Questions

Problem 14PAE

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