Suppose the demand function for a product is q 200 -15p 4i, Ask an Expert

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Suppose the demand function for a product is Q= 200 -15P + 4I where P is the per unit price of the good, I is median household income in thousands of dollars, and Q is the number of units demanded per month. Use the equation and assume that median family income remains at $30,000. a. If the equation for the supply curve is Q = 40P − 10, calculate the equilibrium price and for this good. How much will be bought and sold? b. If the government imposes a price ceiling at $5, Will a shortage or surplus result? How large will it be? c. If the government instead imposes a price ceiling at $11, what will the impact be? Explain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91958049

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