Only questions D & E 1. Suppose demand and supply are given by:P =120 – 4QdP = 2Q,a. Find equilibrium price and quantity.b. What is the effect of a price ceiling set at P=20?c. What is the effect of a price floor set at P=20?d. What is the effect of a price ceiling set at P=60?e. What is the effect of a price floor set at P=60?

Equilibrium is achieved in the market where quantity supplied by producer matches the quantity…

uppose demand and supply are given by: P =120 – 4Qd P = 2Q, a. Find equilibrium price and quantity. b. What is the effect of a price ceiling set at P=2C c. What is the effect of a price floor set at P=20? d. What is the effect of a price ceiling set at P=6C e. What is the effect of a price floor set at P=60?

uppose demand and supply are given by: P =120 – 4Qd P = 2Q, a. Find equilibrium price and quantity. b. What is the effect of a price ceiling set at P=2C c. What is the effect of a price floor set at P=20? d. What is the effect of a price ceiling set at P=6C e. What is the effect of a price floor set at P=60?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 6SQ

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