Q. Lovers of opera persuade the government to impose a price ceiling of 50 per ticket at the countrys national opera house. does this policy get more or fewer people to attend? what does the market outcome depend on?

Q. the government has decided that the free market of tobacco is too low

a. suppose the govt imposes a binding price floor in the tobacco market, use a supply and demand diagram to show the effect of this policy on the price of tobacco and quantity of tobacco sold. is there a shortage or surplus of tobacco? what does the market outcome depend on?

b. tobacco producers complain that the price floor has reduced their total revenue. is this possible? explain.

c. in response to producers complaints the govt agrees to purchase all the surplus floor, who benefits from this new policy?who loses?

Q. A recent study found that the demand and supply schedules for frisbees are as follows

P. 11, 10, 9, 8, 7, 6

Qty dd: 1, 2, 4, 6, 8, 10

Qty ss: 15, 12, 9, 6, 3, 1

What are the equilibrium price and quantity of frisbees?