Suppose that the demand curve for some product is p 100-5qd, Ask an Expert

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Suppose that the demand curve for some product is P= 100-5Q_D, where P is the Price per unit (in dollars) of the product and Q_D is the quantity demanded in a period. Suppose that the supply curve for the product is P=5Q_S. where Q_s is the quantity supplied in a period. Show the supply and demand and the equilibrium price and quantity in this market in a diagram. With the aid of a diagram, carefully explain what would happen in this market if the government were to impose a price floor of S80 per unit in this market (specifically, calculate the size of any surplus or shortage and specify the amount that would be traded in the market).

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91803149

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