Suppose P = $ 80 is the new price ceiling. a) Draw a graph of this price ceiling and show the price ceiling equilibrium & compare it to the baseline equilibrium. b) Find the Qd at P = $80 & find the QS at P = $80 numerically. Do you find a shortage or surplus at the new equilibrium? How much is the shortage or surplus?

Suppose P = $ 80 is the new price ceiling. a) Draw a graph of this price ceiling and show the price ceiling equilibrium & compare it to the baseline equilibrium. b) Find the Qd at P = $80 & find the QS at P = $80 numerically. Do you find a shortage or surplus at the new equilibrium? How much is the shortage or surplus?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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