Consider the market for some product X that is represented in the following demand-and-supply diagram. For each

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Consider the market for some product X that is represented in the following demand-and-supply diagram.

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For each of the legislated price controls listed in the next column, determine the price and quantity exchanged after imposition of the control, whether a shortage or surplus develops and, if so, how much.

a. A price floor at $7 per unit

b. A price floor at $11 per unit

c. A price ceiling at $7 per unit

d. ?price ceiling at $11 per unit

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Microeconomics

ISBN: 9780134835839

16th Canadian Edition

Authors: Christopher T.S. Ragan

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