i. Calculate the equilibrium price and quantity. Examine the effect of a price ceiling set by the authorities at ii. Shs.2.00/= per pen.

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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3.
The demand and supply curves of pens in the city of Nairobi are
represented by the following function:-
Required:
Quantity demanded Qd=20-4p
Quantity supplied Qs = -10 + 6p
Where p is the price per pen.
Calculate the equilibrium price and quantity.
Examine the effect of a price ceiling set by the authorities at
ii.
Shs.2.00/= per pen.
Transcribed Image Text:3. The demand and supply curves of pens in the city of Nairobi are represented by the following function:- Required: Quantity demanded Qd=20-4p Quantity supplied Qs = -10 + 6p Where p is the price per pen. Calculate the equilibrium price and quantity. Examine the effect of a price ceiling set by the authorities at ii. Shs.2.00/= per pen.
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