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Correct answers are highlighted, just want to understand how to get them 18-19. In the competitive market for white sugar, consumer demand is given by

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Correct answers are highlighted, just want to understand how to get them

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18-19. In the competitive market for white sugar, consumer demand is given by P = 100 0.05Q and suppliers' behaviour is represented by the supply curve of P = l + 0.005Q, Where P is measured in dollars and Q is measured in kilos per month. Questions 17 through 19 refer to this market. 18. Imagine now that the government imposes a price ceiling of $5.00 per kilo on sugar, and that the ceiling is obeyed by all market participants. In the resulting equilibrium the total number of kilos of sugar exchanged in the market is equal to: A) 2100 B) 2000 C) 1900 D) 1400 E) 1200 F) 1000 G) 800 H) 600 I) 400 J) None of the above 19. Suppose suppliers obey the price ceiling but consumers sell sugar on a black market. What will the black market price for sugar be? A) $5 B) $10 C) $10.50 D) $40 E) $50 F) $60 G) $70 H) $80 I) $21 J) None ofthe above

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