3 Suppose demand and supply are given by: P = 100 – Qa P = 10 + 2Qd a. Find equilibrium price and quantity. b. What is the effect of a price ceiling set at P=60? c. What is the effect of a price floor set at P=60? d. What is the effect of a price ceiling set at P=80? e. What is the effect of a price floor set at P=80? f. Draw a diagram showing your answers in a, b, and e.

3 Suppose demand and supply are given by: P = 100 – Qa P = 10 + 2Qd a. Find equilibrium price and quantity. b. What is the effect of a price ceiling set at P=60? c. What is the effect of a price floor set at P=60? d. What is the effect of a price ceiling set at P=80? e. What is the effect of a price floor set at P=80? f. Draw a diagram showing your answers in a, b, and e.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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Question

3 Suppose demand and supply are given by:
P = 100 – Qa
P = 10 + 2Qd
-
a. Find equilibrium price and quantity.
b. What is the effect of a price ceiling set at P=60?
c. What is the effect of a price floor set at P=60?
d. What is the effect of a price ceiling set at P=80?
e. What is the effect of a price floor set at P=80?
f. Draw a diagram showing your answers in a, b, and e.

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