Price 4 1 8,000 15,000 25,000| 75,000/10o,000 125,000 175,000 Quantity 90,000 47,000 1. Using the above graph, if we have a binding price of $4.00: a. Would this be a price ceiling or a price floor? b. What market condition does it create? C. By how much do Qd and Qs differ?

Price 4 1 8,000 15,000 25,000| 75,000/10o,000 125,000 175,000 Quantity 90,000 47,000 1. Using the above graph, if we have a binding price of $4.00: a. Would this be a price ceiling or a price floor? b. What market condition does it create? C. By how much do Qd and Qs differ?

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

Price
4
1
8,000 15,000 25,000| 75,000/10o,000 125,000 175,000 Quantity
90,000
47,000
1. Using the above graph, if we have a binding price of $4.00:
a. Would this be a price ceiling or a price floor?
b. What market condition does it create?
C.
By how much do Qd and Qs differ?

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