Suppose that the demand curve for wheat is Q=140-10p and the supply curve is Q = 10p. The government imposes a price ceiling of p=$3 per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is 70 and the price without the price ceiling is $ 7. The equilibrium quantity with the price ceiling is 30.
Suppose that the demand curve for wheat is Q=140-10p and the supply curve is Q = 10p. The government imposes a price ceiling of p=$3 per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is 70 and the price without the price ceiling is $ 7. The equilibrium quantity with the price ceiling is 30.
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand, And Government Policies
Section: Chapter Questions
Problem 10PA
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