Instructions: Under settings, click "Price Floor" to select it When it is selected, it will be highilighted in dark blue. a. What is the equilibrium price and quantity in the absence of an effective price floor? P=$ 25 units 0:20 b. What is the new price and quantity if a priçe floor is set at $6.00? P-$ 6Q- 20 units c. Is the price floor at $6.00 effective? Yes d. What is the new price and quantity if the price floor is set at $3.00? P-$ 5Q= 25 units e Is the price floor at $3.00 effective? No 1. When the price floor is effective, what happens to the quantity transacted in the market? Decreases

Instructions: Under settings, click "Price Floor" to select it When it is selected, it will be highilighted in dark blue. a. What is the equilibrium price and quantity in the absence of an effective price floor? P=$ 25 units 0:20 b. What is the new price and quantity if a priçe floor is set at $6.00? P-$ 6Q- 20 units c. Is the price floor at $6.00 effective? Yes d. What is the new price and quantity if the price floor is set at $3.00? P-$ 5Q= 25 units e Is the price floor at $3.00 effective? No 1. When the price floor is effective, what happens to the quantity transacted in the market? Decreases

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 19AA

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