1. What is the equilibrium price and quantity? Equilibrium price = Equilibrium quantity = 2. At P =$4, is there a shortage or surplus? Why? What is the amount of shortage or surplus? Dose the price rise or fall? 3. Suppose that the government set a price at P = $2, is this price control called a price ceiling or price floor? Why? 4. Suppose that demand increase by 40 units at each price level, what is the new equilibrium price and quantity? New Equilibrium price = New Equilibrium quantity =