The table sets out the demand and supply schedules for college meals.

6.a.What is the market equilibrium?

Market equilibrium is $6, where 2500 meals are demanded, and 2500 meals are produced.

The reason for this is equilibrium occurs where demand = supply, which is 2500=2500

b.If the college put a price ceiling on meals at $7 a meal, what is the price students pay for a meal? How many meals do they buy?

Price paid = $6, and they buy 2500 meals

the price ceiling is not binding because the price of $7 is already above the equilibrium point, so one will only pay $6.

7.If the college put a price ceiling on meals at $4 a meal, what is the quantity bought, the shortage of meals, and the maximum price that someone is willing to pay for the last meal available?