Suppose demand and supply are given by Qd = 60 - P and Qs = 1.0P - 10.
a. What are the equilibrium quantity and price in this market?
- Equilibrium quantity:
- Equilibrium price: $
b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.
- Quantity demanded:
- Quantity supplied:
- Surplus:
c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in the market. Also, determine the full economic price paid by consumers.
- Quantity demanded:
- Quantity supplied:
- Shortage:
- Full economic price: $