Refer to the demand and supply equations to answer the following questions. ...
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Refer to the demand and supply equations to answer the following questions.
Market demand is given as QD = 200 – 3P.
Market supply is given as QS = 2P + 100.
1) If the government imposes a binding price floor of
$28.00in this market, what is the result?
a. There will be a of units. b. The redistribution of surplus from consumers to the producer is equal to $.
c. The loss of producer surplus is equal to $.
2) If the government imposes a binding price ceiling of $14.00 in this market, what is the result? a. There will be a of units.
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