93. Problems and Applications Q8 Ifenty Potter qwns the orily weil in town that produces clean drining water, He faces the following demand, marginal revenue, and maroinal cost curver: 10 The profit-maximizing quantity is units, and the profit-maximizing price is Mayor George Bailey, concerned about water consumers, is considering a price celling that is 10% below the monopoly price. At. this new price, the quantity demanded would be units, At this quantity, the marginal cost would be amount. the price. Therefore, the profit-maximizing Mr. Potter produce this George's Uncle Beily says that a price ceiling is a bad idea because price cellings cause shortages. True or False: A price celling that is 10 sy below the monoooly price would cause a shortage. True false George's friend Clarence, who is even more concerned about consumers, suggests a price ceiling 50% below the monopoly price. At this price, the quantity demanded would be units, and the quantity supplied would be units. True or False: A price ceiling 50% below the monopoly price would cause a shortage. True False