Using the supply and demand equations below, answer the following questions. QD = 30 - 2P Q$ = 10 + 2P %3D 1. What is the equilibrium price and quantity in this market? 2. If the government uses a price control in this market, setting the price at $6. Describe the effect this will have in the market and calculate the shortage or surplus. If this is a normal good, explain what will happen to the equilibrium price and quantity if consumer income increases.

Using the supply and demand equations below, answer the following questions. QD = 30 - 2P Q$ = 10 + 2P %3D 1. What is the equilibrium price and quantity in this market? 2. If the government uses a price control in this market, setting the price at $6. Describe the effect this will have in the market and calculate the shortage or surplus. If this is a normal good, explain what will happen to the equilibrium price and quantity if consumer income increases.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 1SCQ: Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher...

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