3. A recent study found that the demand and supply schedules for Frisbees are as follows:

Price per Quantity Quantity Frisbee Demanded Supplied

$11 1 million Frisbees 15 million Frisbees 10 2 12 9 4 9 8 6 6 7 8 3 6 10 1

a. What are the equilibrium price and quantity of Frisbees?

b. Frisbee manufacturers persuade the government that Frisbee production improves scientists’ understanding of aerodynamics and thus is important for national security.

A concerned Congress votes to impose a price floor $2 above the equilibrium price.

What is the new market price? How many Frisbees are sold?

c. Irate college students march on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor.

What is the new market price? How many Frisbees are sold?