Question #2001966: Other Economics Problems

Question: Suppose demand and supply are given by Q d = 50 – P and Q s = 1/2 P – 10

a) What are the equilibrium quantity and price in this market?

b) Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market. c) Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of$30 is imposed in this market.

Solution: The solution consists of 198 words (3 pages)
Deliverables: Word Document

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