The next 3 questions involve the following supply and demand equations. Supply: q = 15 + (1/4)p Demand: q = 90 − (1/2)p 6. What is the market equilibrium?1 (A) p∗ =140,q∗ =50 (B) p∗ = 56.25, q∗ = 29.07 (C) p∗ = 29.07, q∗ = 160 (D) p∗ =100,q∗ =40 7. The government enacts a price ceiling of $80. What is the surplus (quantity supplied minus quantity demanded)? (A) 15. (B) 10. (C) 25. (D) None of the above 8.
The next 3 questions involve the following supply and demand equations. Supply: q = 15 + (1/4)p Demand: q = 90 − (1/2)p 6. What is the market equilibrium?1 (A) p∗ =140,q∗ =50 (B) p∗ = 56.25, q∗ = 29.07 (C) p∗ = 29.07, q∗ = 160 (D) p∗ =100,q∗ =40 7. The government enacts a price ceiling of $80. What is the surplus (quantity supplied minus quantity demanded)? (A) 15. (B) 10. (C) 25. (D) None of the above 8.
Survey of Economics (MindTap Course List)
9th Edition
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Irvin B. Tucker
Chapter4: Markets In Action
Section: Chapter Questions
Problem 18SQ
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The next 3 questions involve the following supply and demand equations.
Supply: q = 15 + (1/4)p Demand: q = 90 − (1/2)p
6. What is the market equilibrium ?1
(A) p∗ =140,q∗ =50
(B) p∗ = 56.25, q∗ = 29.07 (C) p∗ = 29.07, q∗ = 160 (D) p∗ =100,q∗ =40
7. The government enacts a price ceiling of $80. What is the surplus (quantity supplied minus quantity demanded)?
(A) 15.
(B) 10.
(C) 25.
(D) None of the above
8. What is the Deadweight Loss under a price ceiling of $80?
(A) $875.
(B) $350.
(C) $525.
(D) None of the above.
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