# 2. Price Floors & Price Ceilings Analysis -10pts. "A recent study in your area found that the demand-and-supply schedules for coffee-to-go are as follows:" Price per cup Quantity Demanded, Quantity Supplied, in millions of cups in millions of cups $4.50 1 7 $4.00 2 6 $3.50 3 5 $3.00 4 4 $2.50 5 $2.00 6 3 2 2A. "What are the equilibrium price and quantity of coffee-to-go? Justify your answer by shortly explaining why you answered so." 2B. "Coffee shops in the area persuade the government that coffee-to-go production requires improvements in quality and safety. Since this is an issue of national security, a concerned government votes to impose a price floor $1.5 above the equilibrium price. What is the new market price? How many coffee-to-go cups are sold? Would you see any market shortage or surplus? Justify your answer by shortly explaining why you answered so." 2C. "College students arrange a strike and demand a reduction in the price of coffee because they need it to be successful at school but now cannot afford. An even more concerned government votes to repeal the price floor and impose a price ceiling $2 below the former price floor. What is the new market price? How many coffee-to-go cups are sold? Shortly explain why." 2D. "Model 2A, 2B, and 2C solutions by illustrating them with a demand & supply diagram."
# 2. Price Floors & Price Ceilings Analysis -10pts. "A recent study in your area found that the demand-and-supply schedules for coffee-to-go are as follows:" Price per cup Quantity Demanded, Quantity Supplied, in millions of cups in millions of cups $4.50 1 7 $4.00 2 6 $3.50 3 5 $3.00 4 4 $2.50 5 $2.00 6 3 2 2A. "What are the equilibrium price and quantity of coffee-to-go? Justify your answer by shortly explaining why you answered so." 2B. "Coffee shops in the area persuade the government that coffee-to-go production requires improvements in quality and safety. Since this is an issue of national security, a concerned government votes to impose a price floor $1.5 above the equilibrium price. What is the new market price? How many coffee-to-go cups are sold? Would you see any market shortage or surplus? Justify your answer by shortly explaining why you answered so." 2C. "College students arrange a strike and demand a reduction in the price of coffee because they need it to be successful at school but now cannot afford. An even more concerned government votes to repeal the price floor and impose a price ceiling $2 below the former price floor. What is the new market price? How many coffee-to-go cups are sold? Shortly explain why." 2D. "Model 2A, 2B, and 2C solutions by illustrating them with a demand & supply diagram."
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 21P
Related questions
Question
not use ai please
Transcribed Image Text:# 2. Price Floors & Price Ceilings Analysis -10pts.
"A recent study in your area found that the demand-and-supply schedules for coffee-to-go are as
follows:"
Price per cup Quantity Demanded,
Quantity Supplied,
in millions of cups
in millions of cups
$4.50
1
7
$4.00
2
6
$3.50
3
5
$3.00
4
4
$2.50
5
$2.00
6
3
2
2A. "What are the equilibrium price and quantity of coffee-to-go? Justify your answer by shortly
explaining why you answered so."
2B. "Coffee shops in the area persuade the government that coffee-to-go production requires
improvements in quality and safety. Since this is an issue of national security, a concerned
government votes to impose a price floor $1.5 above the equilibrium price. What is the new market
price? How many coffee-to-go cups are sold? Would you see any market shortage or surplus? Justify
your answer by shortly explaining why you answered so."
2C. "College students arrange a strike and demand a reduction in the price of coffee because they
need it to be successful at school but now cannot afford. An even more concerned government votes
to repeal the price floor and impose a price ceiling $2 below the former price floor. What is the new
market price? How many coffee-to-go cups are sold? Shortly explain why."
2D. "Model 2A, 2B, and 2C solutions by illustrating them with a demand & supply diagram."
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax