Use the accompanying graph to answer these questions. 20 1 S 286 18 Price of X ($) 16 14 12 10 8 6 4 2 O 1 2 3 4 5 6 D Quantity of Good X a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage an Shortage: 3 Full economic price: 12 b. Suppose demand is D and supply is SO. If a price floor of $12 is imposed, what is the resulting surplus? What government of purchasing any and all unsold units? Surplus: units Cost to government: $ [

Use the accompanying graph to answer these questions. 20 1 S 286 18 Price of X ($) 16 14 12 10 8 6 4 2 O 1 2 3 4 5 6 D Quantity of Good X a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage an Shortage: 3 Full economic price: 12 b. Suppose demand is D and supply is SO. If a price floor of $12 is imposed, what is the resulting surplus? What government of purchasing any and all unsold units? Surplus: units Cost to government: $ [

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 7SCQ: What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of...

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