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The table below shows the market for gas in the Carsville. Price per Litre Quantity Demanded Quantity Supplied 0.90 800 200 1.00 750 250 1.10
The table below shows the market for gas in the Carsville. Price per Litre Quantity Demanded Quantity Supplied 0.90 800 200 1.00 750 250 1.10 700 300 1.20 650 350 1.30 600 400 1.40 550 450 1.50 500 500 1.60 450 550 a) What are the equilibrium values of price and quantity? b) Suppose that government imposes a effective price floor that is $0.1 different from the present equilibrium price. What would be the resulting shortage or surplus? c) Suppose instead that government imposes a effective price ceiling that is $0.1 different from the present equilibrium price. What would be the resulting shortage or surplus
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