Question
Please provide detailed explanation for the following: Suppose that we have the following demand and supply functions. QX = 100 - 0.4PX QX = 40
Please provide detailed explanation for the following:
Suppose that we have the following demand and supply functions.
QX = 100 - 0.4PX
QX = 40 + 0.2PX
a. What is the equilibrium market price for product X?
b.What is the equilibrium quantity demanded and supplied?
c. Government imposes a price floor of $120. Analyze the impact of this floor on price, quantity demand and supplied. Would this price floor make a surplus or scarcity of this product in the market?
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Understanding Business
Authors: William NickelsJames McHughSusan McHugh
12th Edition
1259929434, 9781259929434
