The next 3 questions involve the following supply and demand equations.

Supply:q= (1/4)pDemand:q= 6(1/2)p

16.What is the market equilibrium?2

(A)p= 8,q= 2

(B)p= 2,q= 8

(C)p= 1/5,q= 9

(D)p= 8,q= 1/5

17.The government enacts a price floor of $10. What is the surplus? (A) 2.5.

(B) 1.5.

(C) 3.5.

(D) None of the above

18.What is the Deadweight Loss under a price floor of $10?

(A) $2.

(B) $3.

(C) $6.

(D) None of the above.