Suppose demand and supply are given by qd = 60 – p and qs = 1.0p – 20
Suppose demand and supply are given by Qd = 60 – 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 $52 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 $35 is imposed in the market. Also, determine the full economic price paid by consumers.
Quantity demanded:
Quantity supplied:
Shortage:
Full economic price: $