If the college put a price ceiling on meals at $4 a meal, what is the quantity bought, the shortage of meals, and the maximum price that someone is willing to pay for the last meal available?

Price Quantity demanded Quantity supplied

(dollars per meal) meals per week

4 3,000 1,500

5 2,700 2,000

6 2,500 2,500

7 2,250 3,000

8 2,000 3,500

The table sets out the demand and supply schedules for college meals.

What is the market equilibrium? Market equilibrium is $6, where 2500 meals are demanded, and 2500 meals are produced.

The reason for this is equilibrium occurs where demand = supply, which is 2500=2500

If the college put a price ceiling on meals at $7 a meal, what is the price students pay for a meal? How many meals do they buy?Price paid = $6, and they buy 2500 meals

the price ceiling is not binding because the price of $7 is already above the equilibrium point, so one will only pay $6.