Suppose that demand is given by the equation P= -8.8Q+60 and supply is given by the equation P=3.2Q+12. a.Suppose the government sets the price at $21.60, and this prevents the price from adjusting to the market equilibirium. Is that price a price ceiling, a price floor, or neither? b. If P= $21.60 is there a shortage, a surplus, or neither? c. If P = $21.60, what quantity will be sold in the market? a. If P = $21.60, there is a A price floor OB. neither OC. price ceiling b. If P = $21.60, there is a OA. shortage OB. neither OC. surplus c. If P = $21.60, units will be sold in the market.

Suppose that demand is given by the equation P= -8.8Q+60 and supply is given by the equation P=3.2Q+12. a.Suppose the government sets the price at $21.60, and this prevents the price from adjusting to the market equilibirium. Is that price a price ceiling, a price floor, or neither? b. If P= $21.60 is there a shortage, a surplus, or neither? c. If P = $21.60, what quantity will be sold in the market? a. If P = $21.60, there is a A price floor OB. neither OC. price ceiling b. If P = $21.60, there is a OA. shortage OB. neither OC. surplus c. If P = $21.60, units will be sold in the market.

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

Suppose that demand is given by the equation
P = -8.8Q +60 and supply is given by the equation
P=3.2Q+12.
a.Suppose the government sets the price at $21.60, and this
prevents the price from adjusting to the market equilibirium. Is that
price a price ceiling, a price floor, or neither?
b. If P = $21.60 is there a shortage, a surplus, or neither?
c. If P = $21.60, what quantity will be sold in the market?
a. If P = $21.60, there is a
A
price floor
B.
neither
OC. price ceiling
b. If P = $21.60, there is a
OA. shortage
OB. neither
OC. surplus
c. If P = $21.60, units will be sold in the market.

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