Suppose demand and supply are given by Qd = 40 - P and Qs = 1.0P - 20.
a. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: $
b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $36 is imposed in this market. Quantity demanded: Quantity supplied: Surplus:
c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $22 is imposed in the market. Also, determine the full economic price paid by consumers. Quantity demanded: Quantity supplied: Shortage: Full economic price: $