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 15 million 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?