Price in $ Quantity Demanded Quantity Supplied in Million in Million 120 16 20 100 18 18 80 20 22 16 60 14 a. Suppose the government sets a price ceiling of 80$. VWill there be a shortage or a surplus and if so, how large will it be? b. Suppose the government sets a price ceiling of 120$. Will you be in favor of the government's decision? Why

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A: Equilibrium is achieved at the output level where Qs equals Qd.

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A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

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A: “Since you have posted a question with multiple sub-parts, we will solve the at most three sub-parts…

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Q: a) Discuss advantages and disadvantages when government imposes price ceiling.

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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A: The answer is given below

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A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…