For each of the questions, assume we are examining a market that is represented by the following graph

a) List the equilibrium quantity and price.

b) Assume the government imposes a binding price ceiling of $12 per unit. What will result?a shortage

or surplus? How big is the shortage or surplus?

c) Briefly explain why a price ceiling of $24 per unit would not have the effect of keeping prices low for

buyers.

d) Assume the government imposes a binding price floor of $24 per unit. What will result?a shortage

or surplus? How big is the shortage or surplus?