A recent study found that the demand-and-supply schedules for Frisbees are as follows: Price per Frisbee Quantity
Question:
A recent study found that the demand-and-supply schedules for Frisbees are as follows:
Price per Frisbee Quantity Demanded Quantity 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 is thus 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?
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