Table below shows the market for goat's milk in the country of Pegasus (in thousands of litres). Quantity Quantity Supplied Price ($) Demanded 0.1 440 200 0.15 400 240 0.2 0.25 360 280 320 280 320 0.3 360 0.35 240 400 0.4 200 440 0.45 160 480 0.5 120 520 a) What is the present equilibrium price and quantity traded? Round your answers to 2 decimal places. Price: $ Quantity:
Table below shows the market for goat's milk in the country of Pegasus (in thousands of litres). Quantity Quantity Supplied Price ($) Demanded 0.1 440 200 0.15 400 240 0.2 0.25 360 280 320 280 320 0.3 360 0.35 240 400 0.4 200 440 0.45 160 480 0.5 120 520 a) What is the present equilibrium price and quantity traded? Round your answers to 2 decimal places. Price: $ Quantity:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve a, b, c and d
Transcribed Image Text:Table below shows the market for goat's milk in the country of Pegasus (in thousands of litres).
Quantity
Demanded
Quantity
Supplied
Price ($)
0.1
440
200
0, 15
400
240
0.2
360
280
0.25
320
320
0.3
280
360
0.35
240
400
0.4
200
440
0.45
160
480
0.5
120 520
a) What is the present equilibrium price and quantity traded? Round your answers to 2 decimal places.
Price: $
Quantity:
b) Suppose government introduces a price floor of $.40 per litre. What would be the resulting shortage or surplus?
(Click to select) of
c) What would be the result if, after the Introduction of the price floor, both the quantity demanded and the quantity supplied were to
Increase by 10 percent?
(Click to select) of
Awhat nld
Transcribed Image Text:a) What is the present equilibrlum price and quantity traded? Round your answers to 2 decimal places.
Price: $
Quantity:
b) Suppose government introduces a price floor of $.40 per litre. What would be the resulting shortage or surplus?
(Click to select) of
c) What would be the result if, after the introduction of the price floor, both the quantity demanded and the quantity supplied were to
increase by 10 percent?
(Click to select) of
d) What would happen if, Instead, the quantity demanded and quantity suppled were to decrease by 10 percent?
(Click to select) of
(Click to select)
surplus
Shortage
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