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Take Quiz Suppose the Demand and Supply equations fora small Market are given by: Qd = 400 - 2P and Qs = - 80 + 4P 1) Use these equations to calculate what is the Equilibrium Price and Quantity is in this Market . Equilibrium Price = $ no units, no Decimal Places 2) Based on this Equilibram Price -- what is the Equilibrium Quantity? Equilibrium Quantity = no units, no Decimal Places 3) If the Government Put in place a Price Ceiling of $60 -- why might they want to do this? Put A, B, or C based on the answers below: . Put A for: Government might think the Equilibrium Market Price is too high - - They want to help Consumers . Put B for: Government might think the Equilibrium Market Price is too low -- They want to help Producers . Put C for: Government might think the Equilibrium Market Quantity is too high -- They want to Discourage Production 4) Based on this Price Ceiling of $60 -- what is the Quantity Demanded? no units -- what is the Quantity Supplied? no units 5) Based on your calculations from the Previous Question -- Put A, B, or C based on the answers below: Put A for: Qs = Qd at this price we have a Market Equilibrium . Put B for: Qs > Qd at this price -- there is a Surplus of 120 Units . Put C for: Qd > Qs at this price -- there is a Shorage of 120 Units 6) If the previous Government Price Restriction was now removed and they put in place a Price Floor of $90 -- why might they want to do this? Put A, B, or C based on the answers below: . Put A for: Government might think the Equilibrium Market Price is too high - - They want to help Consumers . Put B for: Government might think the Equilibrium Market Price is too low -- They want to help Producers . Put C for: Government might think the Equilibrium Market Quantity is too low -- They want to Encourage Consumption 7) Based on this Price Floor of $90 -- what is the Quantity Demanded? no units -- what is the Quantity Supplied? no units 8) Based on your calculations from the Previous Question -- Put A, B, or C based on the answers below: . Put A for: Qs = Qd at this price we now have a Market Equilibrium Put B for: Qs > Qd at this price -- there is a Surplus of 60 Units . Put C for: Qd > Qs at this price -- there is a Shortage of 80 Units