The next 3 questions involve the following supply and demand equations. Supply: q = 15 + (1/4)p Demand: q = 90 − (1/2)p 6. What is the market equilibrium?1 (A) p∗ =140,q∗ =50 (B) p∗ = 56.25, q∗ = 29.07 (C) p∗ = 29.07, q∗ = 160 (D) p∗ =100,q∗ =40 7. The government enacts a price ceiling of $80. What is the surplus (quantity supplied minus quantity demanded)? (A) 15. (B) 10. (C) 25. (D) None of the above 8.

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The next 3 questions involve the following supply and demand equations. Supply: q = 15 + (1/4)p Demand: q = 90 − (1/2)p 6. What is the market equilibrium?1 (A) p∗ =140,q∗ =50 (B) p∗ = 56.25, q∗ = 29.07 (C) p∗ = 29.07, q∗ = 160 (D) p∗ =100,q∗ =40 7. The government enacts a price ceiling of $80. What is the surplus (quantity supplied minus quantity demanded)? (A) 15. (B) 10. (C) 25. (D) None of the above 8. What is the Deadweight Loss under a price ceiling of $80? (A) $875. (B) $350. (C) $525. (D) None of the above.
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