MICROECONOMICS In the market for yoghourt the demand curve is D(p) = 106 - 2,5p, and supply is given by S (p) = 1p + 8. Calculate the value of excess demand (which can be 0), if the government sets a price ceiling p = 29! Use 2 decimals in your answer!

MICROECONOMICS In the market for yoghourt the demand curve is D(p) = 106 - 2,5p, and supply is given by S (p) = 1p + 8. Calculate the value of excess demand (which can be 0), if the government sets a price ceiling p = 29! Use 2 decimals in your answer!

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

MICROECONOMICS

In the market for yoghourt the demand curve is D(p) = 106 - 2,5p, and supply is given by S (p) = 1p + 8. Calculate the value of excess demand (which can be 0), if the government sets a price ceiling p = 29! Use 2 decimals in your answer!

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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