Question 21Figure #1Price$20181614121086.410 20 30 40 50 60 70 80 90 100 QuantityRefer to Figure #1. If the government imposes a price floor at S14. there would be aO shortage of 40 units and the law of supply would force the price falling from S14 to a lower price to get rid of the shortageO shortage of 40 units and the law of supply would force the price rising up from $14 to a higher price to get rid of the shortageO surplus of 40 units and the law of supply and demand would force the price falling from S14 to $10 to get the surplusO surplus of 40 units and the law of supply and demand are not allowed to force the price falling from $14 to $10 to clear the surplus

Equilibrium refers to the situation where quantity(Q) demanded equals quantity(Q) supplied. The…

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Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 16RQ: What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the...

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