Suppose market demand and supply are given by Q = 2,800-8P and Q, = 400+16P.If the government imposes a price floor of $125.00,a. there will be a surplus of 600 units.b. there will be a shortage of 600 units.c. producer surplus will decrease.d.consumer surplus will increase.e. there will be neither a surplus nor a shortage.

Price floor is the minimum price which is set by the government for goods and services , this is…

uppose market demand and supply are given by Q=2,800-8P and Q,=400+16P. the government imposes a price floor of $125.00, - there will be a surplus of 600 units. .there will be a shortage of 600 units. - producer surplus will decrease. consumer surplus will increase. there will be neither a surplus nor a shortage. .

uppose market demand and supply are given by Q=2,800-8P and Q,=400+16P. the government imposes a price floor of $125.00, - there will be a surplus of 600 units. .there will be a shortage of 600 units. - producer surplus will decrease. consumer surplus will increase. there will be neither a surplus nor a shortage. .

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 15SQ

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