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Refer to the demand and supply equations to answer the following questions. Market demand is given as QD = 200 - 3P. Market supply is
Refer to the demand and supply equations to answer the following questions. Market demand is given as QD = 200 - 3P. Market supply is given as QS = 2P + 100. 1) If the government imposes a binding price floor of $28.00 in this market, what is the result? a. There will be a of units. b. The loss of consumer surplus to deadweight loss is equal to $ c. The loss of consumer surplus to producer surplus is equal to $ d. The TOTAL loss of consumer surplus is equal to $ e. The loss of producer surplus due to deadweight loss is equal to $ 2) If the government imposes a binding price ceiling of $14.00 in this market, what is the result? a. There will be a of units. b. The highest price that would be charged in a black market is $ c. The deadweight loss due to price ceiling is equal to $
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