Use the demand schedule below to answer the following questions.

Price	Quantity Demanded	Quantity Supplied
$20	100	58
$25	90	62
$30	80	66
$35	70	70
$40	60	74
$45	50	78
$50	40	82

1. Suppose the government places a price floor of $25 on blenders. What effect will this have on the market for blenders? Why? If there is a surplus or shortage, how large is it?
2. Choose a price that would be a binding price ceiling. If the government sets a price ceiling at that amount, what effect will this have on the market for blenders? Why? If there is a surplus or shortage, how large is it?
3. Reply to another student

In your responses, consider what makes a price ceiling or price floor binding and what happens if they are not binding.