Presume demand and supply are given by Qd = 50 - P and Qs = 0.5P - 10. a. What are the equilibrium quantity and price in this market?
1. What are the equilibrium quantity and price in this market?
2. Decide the quantity supplied, the quantity demanded and the magnitude of the surplus if a price floor of $48 is imposed in this market.
3. Decide the quantity supplied, the quantity demanded and the magnitude of the shortage if a price ceiling of $32 is imposed in the market. Also, decide the full economic price paid by consumers.