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