Consider the market for some product X that is represented in the demand-and-supply diagram. For each of the legislated price controls listed, determine the price and quantity exchanged after imposition of control, whether a shortage or surplus develops, and if so, how much. a. a price floor at $28 per unit The price is $ 36 and the quantity exchanged is 100. This means that there is no effect on the market. (Type whole numbers.) b. a price floor at $44 per unit The price is $ and the quantity exchanged is. This means that there is (Type whole numbers.) C Price ($) 76.00- 68.00- 60.00- 52.00- 44.00- 36.00 28.00- 20.00- 12.00- 4.00- 0 25 50 75 100 125 Quantity (units per day) 150 S D 175

Consider the market for some product X that is represented in the demand-and-supply diagram. For each of the legislated price controls listed, determine the price and quantity exchanged after imposition of control, whether a shortage or surplus develops, and if so, how much. a. a price floor at $28 per unit The price is $ 36 and the quantity exchanged is 100. This means that there is no effect on the market. (Type whole numbers.) b. a price floor at $44 per unit The price is $ and the quantity exchanged is. This means that there is (Type whole numbers.) C Price ($) 76.00- 68.00- 60.00- 52.00- 44.00- 36.00 28.00- 20.00- 12.00- 4.00- 0 25 50 75 100 125 Quantity (units per day) 150 S D 175

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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