1. Scarcity forces society to confront three critical
issues. List those issues and explain how they are related to the
problem of scarcity.
2. Suppose that the quantity demanded and quantity
supplied in the market for milk is as follows:
Price per
Gallon
Quantity
Demanded
Quantity
Supplied
$5
1,000
5,000
$4
2,000
4,500
$3
3,500
3,500
$2
4,100
2,000
$1
6,000
1,000
What is the equilibrium price and quantity of
milk?
If the government places a price ceiling of...