Problem 1: Suppose the government imposed a minimum price of $7 in the schedule of exercise. What would occur? Illustrate.
Problem 2: In exercise, indicate what the price would have to be to represent an effective price ceiling. Point out the surplus or shortage that results. Illustrate a price floor and provide an example of a price floor.
Problem 3: Evaluate the following statement: "The demand for U.S. oranges has increased because the quantity of U.S. an orange demanded in Japan has risen."