Suppose market demand is = 80 - 5P and market supply is = 35 + 5P. The market equilibrium price is $ 4.50 and the equilibrium quantity is 57.5 units. (Enter your responses rounded to two decimal places.) Suppose the government institutes a price floor of $6.50. The price floor will results in a of units. (Enter your response as a whole number.) surplus shortage
Suppose market demand is = 80 - 5P and market supply is = 35 + 5P. The market equilibrium price is $ 4.50 and the equilibrium quantity is 57.5 units. (Enter your responses rounded to two decimal places.) Suppose the government institutes a price floor of $6.50. The price floor will results in a of units. (Enter your response as a whole number.) surplus shortage
Chapter4: Markets In Action
Section: Chapter Questions
Problem 15SQ
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Transcribed Image Text:Suppose market demand is
Q° = 80-5P
and market supply is
Q = 35+5P.
The market equilibrium price is $ 4.50 and the equilibrium quantity is 57.5 units. (Enter your responses rounded to two decimal places.)
Suppose the government institutes a price floor of $6.50.
The price floor will results in a
V of
units. (Enter your response as a whole number.)
surplus
shortage
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