Problem
Draw a supply and demand curve diagram with a price ceiling below the equilibrium price, and indicate the quantity supplied and quantity demanded at that price, and the resulting shortage.
a. What happens to the quantity supplied, the quantity demanded, and the shortage if the price ceiling is raised? If it is lowered?
b. What happens to the quantity supplied, the quantity demanded, and the shortage if, for a given price ceiling, the demand curve shifts to the right?
c. What happens to the quantity supplied, the quantity demanded, and the shortage if, for a given price ceiling, the supply curve shifts to the right?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.