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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 6.0 20 320 6.50 10 360 7.00 0 400 1. What was the equilibrium price $ 3 and quantity 80 in the 2021 Flower Market? 2. How much surplus are consumers getting? 3. How much surplus are producers getting? 4. What is the total surplus? 5. In February, Flowers.com decided to change their ticket price from $3 to $5 dollars. Which direction would this shift demand? (Left/Right/Neither) a. Is the demand showing elastic or inelastic behavior? 6. The government decided to impose a price floor $1 above the equilibrium price. a. What is the equilibrium price now $ and how many will be sold? b. What will be the resulting amount of surplus/shortage if any (0 if none)
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