The graph attached shows the demand and supply in a market. (a) The equilibrium quantity is -------------- and the equilibrium price is -----------. (b) If the actual market price is set at $100 per unit, there will be a --------------- (shortage or surplus) of ____units in this market. (c) If government wants to use a price floor, it should choose a price of how much?
The graph attached shows the demand and supply in a market. (a) The equilibrium quantity is -------------- and the equilibrium price is -----------. (b) If the actual market price is set at $100 per unit, there will be a --------------- (shortage or surplus) of ____units in this market. (c) If government wants to use a price floor, it should choose a price of how much?
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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Question
The graph attached shows the
(a) The
(b) If the actual market price is set at $100 per unit, there will be a --------------- (shortage or surplus) of ____units in this market.
(c) If government wants to use a
(d) At that price floor how many units are going to be sold in this market?
Transcribed Image Text:SUPPLY
400
Price
300
per unit
(dollars)
200
100
DEMAND
50
100 150 200 250
Quantity of output
(units per time period)
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