
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:(Figure: Market for Sustainable Furniture) Consider the market for furniture made from sustainable, man-made forests that is shown in the figure. The government wants to encourage buyers to buy such furniture and places a price ceiling of $250 on the market. The market quantity actually sold after the
implementation of the price ceiling is thousand pieces of furniture.
Price
($ per piece
of furniture)
$600
$350
$250
$100
300 500
Supply
Demand
700 Quantity of furniture
pieces (thousands)
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