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January 2021, the following showed the demand and supply schedules for flowers: Flowers Quantity Demanded Quantity Supplied $2.00 100 0 2.50 90 40 3.00 80
January 2021, the following showed the demand and supply schedules for flowers: Flowers Quantity Demanded Quantity Supplied $2.00 100 0 2.50 90 40 3.00 80 80 3.50 70 120 4.00 60 160 4.50 50 200 5.00 40 240 5.50 30 280 6.00 20 320 6.50 10 360 7.00 0 4007. The government got rid of the previously imposed price floor after and decided to impose a price ceiling $2 above the equilibrium price. a. What will flowers now sell for $ and how many will be sold? b. What will be the resulting amount of surplus/shortage (0 if none)? 8. The government got rid of the price controls and decided everyone should have easier access to flowers because they're pretty and smell nice. Therefore they decide to impose a $2 tax/flower (supply side). a. What is the new market price for flowers? $ b. How much tax revenue do they make? $ c. What is the total surplus in this taxed market? d. How much deadweight loss
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