Answered: Market for Public Transportation Price…

Market for Public Transportation Price Quantity Demanded $0.75 100,000 $1.00 92,000 $1.25 86,000 $1.50 80,000 $1.75 75,000 $2.00 68,000 Quantity Supplied 65,000 80,000 86,000 100,000 115,000 116,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the following table. Find the shortage if a price ceiling = $1.5 is imposed.

Market for Public Transportation
Price Quantity Demanded
$0.75 100,000
$1.00 92,000
$1.25
86,000
$1.50 80,000
$1.75
75,000
$2.00 68,000
Quantity Supplied
65,000
80,000
86,000
100,000
115,000
116,000

Video Definition Video Definition Government regulation setting a maximum price a business may charge for a given good or service. A price ceiling itself does not cause demand or supply to change. It is simply a mechanism used to set a price that can be legally charged in the market. Price ceilings are often implemented during times of crisis to avoid price gouging.

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