, 23% View History Bookmarks Window Help courses.apa.com 16. Problems and Applic
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, 23% View History Bookmarks Window Help courses.apa.com 16. Problems and Applications Q10 A market is described by the following supply-and-demand curves 2s-2P 300-P The equibrium price is s and the equilibrium quantity is Suppose the government imposes a price ceiling of $90. This price celling is supplied will be ,and the market price will be Therefore, a price ceilling of $90 will result in The qu , and the quantity demanded will be Suppose the government imposes a price floor of $90. This price floor is supplied will be and the market price will be s Therefore, a price floor of $90 will result in The quant and the quantity demanded will be Instead of a price control, the government levies a tax on producers of $30. As a result, the new supply curve is s2(P-30) With this tax, the market price will be s the quantity supplied will be and the quantity demanded will beExplanation / Answer
Qs=2P
Qd=300-P
For equilibrium
Qs=Qd
2P=300-P
P=100
Q=2*100=200
Answer:- The equilibrium price is:- $100
Equilibrium quantity is 200
Answer:- Suppose the government imposes a price ceiling of $90.
The price ceiling is:- binding price ceiling (as the price ceiling is below the equilibrium price)
And the market price will be:- $90
The quantity supplied will be = 2*90=180
And the quantity demanded will be:- 300-90=210
Therefore a price ceiling of $90 will result in :- Shortage of 30 units (210-180=30)
Answer:- Answer:- Suppose the government imposes a price floor of $90.
The price ceiling is:- Not binding price ceiling (as the price ceiling is lower than the equilibrium price)
And the market price will be:- $100 ( equal to equilibrium price)
The quantity supplied will be = 200
And the quantity demanded will be:- 200
Therefore a price floor of $90 will result in :- neither a shortage nor a surplus
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