Use the following information to answer questions 2 through 7: The graph below shows the supply and demand curves for soda. 13+ 12 11 9 Demand 8 Price Floor 6. 5- 47 3 2 8 9 10 11 12 13 4 5 6. Quantity of soda 2. First consider a situation without any government interventions and no price controls. In that case, what is the equilibrium quantity? 3. What is the equilibrium price? 4. Now suppose that the government imposes a Price Floor equal to $8. As a result of this new policy, what is the quantity demanded? 5. What is the new quantity supplied? 6. As a result of this Price Floor, is there shortage or surplus, or is the price control non- binding? 7. What is the amount of the shortage or surplus? Price of soda

Use the following information to answer questions 2 through 7: The graph below shows the supply and demand curves for soda. 13+ 12 11 9 Demand 8 Price Floor 6. 5- 47 3 2 8 9 10 11 12 13 4 5 6. Quantity of soda 2. First consider a situation without any government interventions and no price controls. In that case, what is the equilibrium quantity? 3. What is the equilibrium price? 4. Now suppose that the government imposes a Price Floor equal to $8. As a result of this new policy, what is the quantity demanded? 5. What is the new quantity supplied? 6. As a result of this Price Floor, is there shortage or surplus, or is the price control non- binding? 7. What is the amount of the shortage or surplus? Price of soda

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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