Economic course

Question Three (25 points) Price 70 60 50 40 30 20 10 5 10 15 20 25 30 35 40 45 Quantity a) Refer to the figure above. Suppose all the sellers in this market started out charging a price of $50 per unit. What is the most likely result? points) b) Refer to the figure above. Now suppose that the government imposes a price ceiling of $40. What will happen to equilibrium price? (8 points) c) "As the price of personal computers continues to fall, demand increases." This sentence is inaccurate. Explain why? (9 points)