Question

In: Economics

PLEASE SHOW WORK Suppose demand and supply are given by Qd = 40 - P and...

PLEASE SHOW WORK

Suppose demand and supply are given by Qd = 40 - P and Qs = 1.0P - 20.

a. What are the equilibrium quantity and price in this market?

Equilibrium quantity:

Equilibrium price: $

b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $34 is imposed in this market.

Quantity demanded:

Quantity supplied:

Surplus:

c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $24 is imposed in the market. Also, determine the full economic price paid by consumers.

Quantity demanded:

Quantity supplied:

Shortage:

Full economic price: $

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
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