1) Use the following information to answer questions 1 to 4. The following equations represent the quantity demanded (Qd) and the quantity supplied (Qs) for headphones: Qd = 200-2P and Qs = 3P. Suppose that the government imposes a price floor of $30 on headphones. Will there be a surplus or a shortage in the market for headphones? If yes, how large will it be? O There is a surplus of 50 sets. O It cannot be determined. This floor is nonbinding. The market is in equilibrium. There is a shortage of rocotr

1) Use the following information to answer questions 1 to 4. The following equations represent the quantity demanded (Qd) and the quantity supplied (Qs) for headphones: Qd = 200-2P and Qs = 3P. Suppose that the government imposes a price floor of $30 on headphones. Will there be a surplus or a shortage in the market for headphones? If yes, how large will it be? O There is a surplus of 50 sets. O It cannot be determined. This floor is nonbinding. The market is in equilibrium. There is a shortage of rocotr

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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