Question
You are given that p=50-4*q is the inverse demand curve and p=10+6*q is the inverse supply curve. a. What is the equilibrium price quantity pair
You are given that p=50-4*q is the inverse demand curve and p=10+6*q is the inverse supply curve.
a. What is the equilibrium price quantity pair if the market is perfectly competitive?
b. Illustrate the effect of a price floor set at $46 on the graph and solve for the size of the difference between the quantity supplied and quantity demanded.
c. Illustrate the effect of a price ceiling set at $22 on the graph and solve for the size of the difference between the quantity supplied and quantity demanded.
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Systems analysis and design in a changing world
Authors: John W. Satzinger, Robert B. Jackson, Stephen D. Burd
5th edition
9780324593778, 1423902289, 9781305117204, 324593775, 978-1423902287
