5. In response to petitioning by the bicycle manufacturers, the government places a price floor of $700 on bicycles. Use the following supply and demand schedules for bicycles in the Table below to answer the questions below. Table Price ($) Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a) Use the information provided in the Table above, to plot the supply and demand curve for bicycles. b) Using the answer from question 5a, show the price floor in the diagram. c) What would be the impact if the government reconsidered and introduced a price ceiling of $550?

5. In response to petitioning by the bicycle manufacturers, the government places a price floor of $700 on bicycles. Use the following supply and demand schedules for bicycles in the Table below to answer the questions below. Table Price ($) Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a) Use the information provided in the Table above, to plot the supply and demand curve for bicycles. b) Using the answer from question 5a, show the price floor in the diagram. c) What would be the impact if the government reconsidered and introduced a price ceiling of $550?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 1QR

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