Question
3. Demand and supply function for good X is given as follows: Qd = 1600-20P; Qs = -800+40P a) Find the equilibrium price (5 marks)
3. Demand and supply function for good X is given as follows: Qd = 1600-20P; Qs = -800+40P
a) Find the equilibrium price (5 marks)
b) How will demand and supply change if:
a. A ceiling price is set at $30 (10 marks)
b. A floor price is set at $50 (10 marks)
c) Explain why governments institute price ceilings and floors. (15 marks)
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
