Price Quantity Demanded Quantity Supplied $0 15 0 $1 13 3 $2 11 6 $3 9 9 $4 7 12 $5 5 15 $6 3 18 Answer the following four questions based on the table above. 2.1. What is the size of the shortage a price ceiling of $2 would create? Briefly explain. 2.2. What is the size of the shortage a price ceiling of $5 would create? Briefly explain.
Price Quantity Demanded Quantity Supplied $0 15 0 $1 13 3 $2 11 6 $3 9 9 $4 7 12 $5 5 15 $6 3 18 Answer the following four questions based on the table above. 2.1. What is the size of the shortage a price ceiling of $2 would create? Briefly explain. 2.2. What is the size of the shortage a price ceiling of $5 would create? Briefly explain.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 4CQQ
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Question
The following table contains the demand schedule and supply schedule for a market for a particular good.
|
|
Quantity Demanded |
Quantity Supplied |
|
$0 |
15 |
0 |
|
$1 |
13 |
3 |
|
$2 |
11 |
6 |
|
$3 |
9 |
9 |
|
$4 |
7 |
12 |
|
$5 |
5 |
15 |
|
$6 |
3 |
18 |
Answer the following four questions based on the table above.
2.1. What is the size of the shortage a
2.2. What is the size of the shortage a price ceiling of $5 would create? Briefly explain.
2.3. What is the size of the surplus a
2.4. What is the size of the surplus a price floor of $5 would create? Briefly explain.
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